University of Winchester Annual Report & Financial Statements July 2023 by University of Winchester

Annual Report and Financial Statements Year ending 31 July 2023

AS A COMMUNITY, WE VALUE

THE LOVE OF LEARNING INDIVIDUAL AND SHARED ENDEAVOUR MAKING A DIFFERENCE

Contents Chair’s Introduction

Vice-Chancellor’s Introduction

Strategic Report Environmental Sustainability Facts and Figures

4-28 13-14 15

Procurement and Value for Money

17-18

Understanding the University’s Risks

19-20

Statement by the Directors in Performance of their Statutory Duties in Accordance with S172(1) Companies Act 2006

Trade Union Facility Time

Financial Review

23-28

Statement of Board of Governors Responsibilities in Respect of the Strategic Report, the Directors’ Report and the Financial Statements

Directors’ Report

Statement of Corporate Governance

33-34

Statement of Internal Controls

35-36

Independent Auditor’s Report to the Board of Governors

38-40

Financial Statements

41-44

Statement of Principal Accounting Policies

45-48

Notes to Accounts

49-63

Administrative information

Annual Report and Financial Statements 2022-23

Chair’s Introduction The past 12 months have been both a welcome return to normality and the beginning of further change and challenge in the higher education sector. This year was the first full academic year unaffected by Covid since the start of the pandemic which disrupted so many aspects of university life. The pandemic is certainly not a time we will look back upon fondly but we can take pride in the way so many of its challenges were met and overcome by our University community. It is also the first full academic year under the leadership of the Vice-Chancellor, Professor Sarah Greer. Under her direction the new Strategic Plan for 2023-28 has been developed and was launched in March following a 12-month process of consultation and development. The Board of Governors is confident that this plan will have a transformative effect, resulting in ever-improving prospects for our graduates and greater benefits to the wider community. The mission of the University has always been to educate,

advance knowledge and serve the common good – the new Strategic Plan brings these three aims into focus more clearly than ever. We have always focused on ensuring that we prepare graduates for the world of work after they leave us. We were delighted that the latest graduate outcomes data from the Higher Education Statistic Agency (HESA) showed that 92.8 per cent of our graduates in 2021 went onto employment or further study – placing the University eighth in the UK. We were also delighted to achieve a silver award in the Teaching Excellence Framework (TEF), with the TEF panel judging both student outcomes and student experience as very high quality, and in some areas, the panel said the University reached an outstanding level of provision, including staff development. These are great achievements, and I would like to thank colleagues across the University for their hard work and dedication in educating and supporting our students. Thanks, too, to my fellow governors who work so closely with the University’s executive leadership team to ensure that Winchester builds on its successes and plans well for a successful and sustainable future.

The University, like the rest of the higher education sector, faces an ongoing challenge in managing sharply rising costs, with frozen tuition fees. However, we continue to take every step to manage our finances prudently and wisely. With the support of the Office for Students’ capital funding, we are beginning major improvements to the Martial Rose Library which will result in a state-of-the-art learning resource for our University community. With continued careful management and imaginative plans for growth, we anticipate a successful year ahead, as we continue in our mission to deliver transformative education.

Annual Report and Financial Statements 2022-23

Vice-Chancellor’s Introduction This year has marked a new chapter in the history of the University of Winchester. In early 2023 we launched our new Strategic Plan 2023-28, which focuses on transformational education, transforming how we operate and work together, and transforming how we work in partnership across our city and region. We have been educating students in Winchester and the surrounding areas since 1840, and an enduring feature of a Winchester education has been that we deliver excellent teaching, ensuring that our graduates gain the skills that they need to lead successful and meaningful lives. Our focus over the coming years will be to develop our approach to teaching and an integrated student experience, incorporating advances in technology but remembering always that education is about shared human endeavour, experiences and growing and developing a common love of learning. Part of living a meaningful life is to find fulfilling and rewarding employment, and our focus on preparing our students for the world of work has been unwavering. We have continued to develop high quality simulation facilities, most recently for the new midwifery students, many of whom will be studying on a degree apprenticeship in the next academic year. With the help of Office for Students capital funding, we are also making a significant investment in reimagining our existing library, to become a holistic student learning centre which meets the needs of students as they move through their journey, offering scaffolded support until they gain the confidence they need for successful employment after graduation. Our focus on this is reflected in the outstanding results in the latest Graduate Outcomes Survey released in July 2023, in which the University of Winchester was 8th in the UK and 4th in England. Our commitment to work more closely and effectively with our partners has already started to bring benefits to both our students and our city community. At the end of this year, the year in which our very first cohort of Nursing students graduated, we celebrated 75 years of the NHS by signing a flagship partnership

agreement with Hampshire Hospitals NHS Foundation Trust. We are committed to working with them to help to meet local workforce needs, by educating outstanding healthcare professionals. We have also committed to supporting the cultural life of our region, by working more closely with arts organisations across the county, and we were proud partners of the inaugural Winchester Book Festival, which provided wonderful opportunities for our students to gain employment skills, as well as establishing an inspiring event for the city. It has been a successful year, full of progress. Despite this, there is no doubt that the higher education sector is facing some very difficult challenges. Home undergraduate tuition fees remain at 2017 levels, but costs have risen sharply with inflation. Students and staff continue to face cost of living challenges, and the situation in Europe continues to cause anxiety and uncertainty. Each of these factors creates financial pressure on the sector and we have experienced some of that financial impact over the past year. We have responded to this by developing a clear and deliverable strategy to meet the challenges ahead. In the coming year, we

will implement our plan to steadily grow our student numbers, by introducing new subject areas at undergraduate level, increasing entry points and flexibility of delivery, exploring new partnerships and growing our postgraduate taught provision, with a focus on professional education. We will also manage our costs carefully, finding new ways of transforming the way we work, to become more efficient and effective in every area.

The University of Winchester is an exempt charity regulated by the Office for Students on behalf of the Charity Commission for England and Wales. The members of the Board of Governors, who include the Vice- Chancellor and staff and student members, are trustees of the charity. As such, the Board of Governors has due regard to the guidance published by the Charity Commission concerning the demonstration of the public benefit provided by the University. This section details how the ways in which the University has delivered its charitable purposes for the benefit of the public.

OUR MISSION IS TO

EDUCATE ADVANCE KNOWLEDGE SERVE THE COMMON GOOD

Annual Report and Financial Statements 2022-23

Strategic Report Introduction The University of Winchester has been educating students for over 180 years. Based in the beautiful and historic city of Winchester, we were founded in 1840 by the Church of England to train teachers working in disadvantaged communities. The University has grown to be a community of over 8,000 students and nearly 1,000 members of staff. Our graduates are the best possible indicator of the public benefit that we provide to society as an institution. They work in some of the most challenging areas of public life, treating and caring for those who are ill or in need of social care, educating children and young people and working in public service in areas such as policing. They ensure that we continue our national leadership in arts and culture, protect our heritage and environment and contribute to the growth of the economy by becoming ethical and innovative business leaders. We are strongly values-driven, educating and enabling graduates to become not only successful in their chosen careers, but also purposeful and compassionate members of society. Our graduates make a difference in their workplaces, communities and the wider world. Public benefit is fundamental to everything we do. It is at the heart of our mission and values and underpins our new Strategic Plan, 2023 – 2028.

Annual Report and Financial Statements 2022-23

Our Mission OUR MISSION IS TO EDUCATE, ADVANCE KNOWLEDGE AND SERVE THE COMMON GOOD. As a University community, we have spent the last year refocusing, reenergising and recommitting to delivering our mission. At the core of our mission, as reflected in our new Strategic Plan, is delivering an exceptional education, environment and experience for our students, instilling in them a love of learning and preparing them for meaningful and successful lives.

Our Values As a University, we have always been - and always will be – led and driven by our values. As the world around us changes, we have accepted the challenge to change with it and move forward with confidence. Our reimagined values reflect our past and speak to our future. As a community we value . . .

THE LOVE OF LEARNING As individuals and as a community, we seek to discover new ideas, and understand new perspectives. We pursue both a depth and breadth of knowledge. We celebrate academic excellence and intellectual challenge. We seek to understand the perspectives of others and we welcome respectful debate, listening to views which may differ from our own with interest and defending our own with reason and humanity.

INDIVIDUAL AND SHARED ENDEAVOUR As individuals and as a community, we seek to bring our best to work and our study. We commit to striving to be successful, to do things well and play our part. We recognise that excellence only comes with effort and persistence. We are confident and believe in ourselves, collectively and individually. We are a welcoming, professional and respectful community. We see working together in partnership – in our own community and beyond it – as a key to expanding our horizons and creating opportunities.

MAKING A DIFFERENCE From our Church of England foundation in 1840, built upon deeply held principles of creating a better world for everyone through education, we continue to play our part to ensure lasting change in the communities we serve through transformational education, impactful research and enduring partnerships. We make a difference by educating graduates who will create a better, fairer world with enthusiasm, energy and creativity. We make a difference to our world by committing to care for it and live in it sustainably. We make a difference to each other by behaving with humanity and respect, recognising that we each make a worthy contribution to a community which we value and of which we are all an important part.

Annual Report and Financial Statements 2022-23

Strategic Plan 2023-2028 In March 2023, the University launched its new Strategic Plan, Our Vision for Transformational Education. It sets out an ambitious plan for transformation: • Transforming how we teach and inspire our students • Transforming how we operate and work together • Transforming how we work in partnership across our city and region The focus of this plan is to deliver an exceptional education, environment and experience for our students, instilling in them a love of learning and preparing them for meaningful and successful lives. As the diagram below shows, at its heart is the public benefit that our graduates contribute to our region, nation and the wider world through the transformational education we provide. This is shaped by our mission and values, and focused on our purpose, people, place and partnerships.

Strategic Plan: Our vision for Transformational Education, 2023 – 2028

Annual Report and Financial Statements 2022-23

Public Benefit – To Educate Education transforms lives. It transforms the life of an individual student; through them their families and communities and then society and the wider world. As a University, our purpose is to provide a transformational educational experience for our students. Our focus over the past year has been to develop our courses and teaching in a way that provides both intellectual challenge and support. We aim to build on our students love of learning and develop their confidence and capabilities to move into the world of work with the skills needed to succeed. We believe in striving continuously to ensure the quality of our teaching. At the heart of our new Strategic Plan is the drive to deliver an exceptional educational experience for our students. Throughout the year, we have re-organised the

University’s Committees, Faculties and Quality teams to focus on this work and ensure quality of delivery and outcomes across our courses. The new Faculty of Law, Crime and Justice, launched in September 2022, brings together a number of professional courses for the first time to build on their success, grow their market share and deliver excellent student experience and graduate outcomes. We have transformed our whole academic portfolio within the Business School to ensure courses are relevant, dynamic and focused on graduate success. We have established new pathways to monitor quality and share best practice across the institution

TEACHING EXCELLENCE The University received an overall Silver Rating by the Office for Students in

the Teaching Excellence Framework (TEF) 2023, with two individual silver ratings in student outcomes and student experience. This rating means the TEF panel assessed the University’s teaching, assessment, feedback and course content and delivery as being of a very high quality. The panel concluded that teaching at the University inspires students to actively engage in and commit to their learning and stretches students to develop knowledge and skill. The report identified the embedding of “professional skills, employability and real-world practice” as part of a very high-quality academic experience”. The panel also found that in some areas, the University reached an “outstanding” level of provision, including its staff development and the University’s articulation of learning gains.

Annual Report and Financial Statements 2022-23

STUDENT AND GRADUATE SUCCESS The University is deeply committed to providing transformational education that ensures graduates have the skills that they need to live successful and meaningful lives. We have continued to integrate employability skills into our courses and to offer real-world learning opportunities to students, alongside an excellent careers service. This crossinstitutional approach has resulted in the University moving into the top 10 in the UK for the proportion of graduates going into employment or further study. Latest figures show that 92.8 per cent of Winchester students who graduated in 2021 went onto work and/or further study within 15 months of graduating – the 8th best result in the UK as a whole and the 4th best among English universities. • Graduate success Ben Morris, who completed the University’s journalism course in 2022, beat more than 2,000 rivals to win a coveted BBC journalism apprenticeship. He was one of just 22 successful applicants. He began his apprenticeship at London’s Broadcasting House in September 2022. The 22-year-old’s achievement is all the more remarkable as he has suffered all his life from spinal muscular atrophy (SMA), a rare genetic condition which restricts his movement. Ben manages to operate his electric wheelchair and do all his work – whether that’s typing a story or editing a radio programme – with just the use of his right index finger. He praised the University of Winchester BA Hons Journalism Course for setting him on the road to success.

• BAFTA award winners Second year Film Production students Benjamin Phillips, Benjamin Dunks and Ollie Trowern won the audience award at The Making Waves Future BAFTA Winners Short Film Competition for their film entitled Where Did We Park? The four-minute film follows the trials and tribulations of two young men who get lost in the woods when they forget where they parked their car. Judges described the Winchester trio’s entry as “. . . the most innovative out of all the films and a very funny concept well executed.” Making Waves is an annual film festival and short film competition celebrating innovative and bold filmmaking. • Seizing opportunities Three Classical Studies students at the University of Winchester were given a special view of ancient civilisations after gaining coveted places on residential courses with the British Schools at Rome and Athens. The trio were the first Winchester students to not only apply for, but to win places on this prestigious programme. Competition for places on the three-week residential course is high, with only 30 undergraduate places offered annually to applicants from all UK universities.

PROFESSIONAL EDUCATION SERVING THE REGION – OUR NURSES Working closely with employers, we have further developed our offering of professional education to meet regional needs. In 2023, our second cohort of students graduated from the University’s Nursing courses, in adult, child, mental health and learning disabilities. It also included several firsts – the first group of graduates of our Nursing Associates apprentices, the first group to complete the Transition to Registered Nurse Degree Apprenticeship course and the first cohort of graduates for the BN Child Nursing Course. We have significantly expanded our number of partnerships and presence within the system, supporting the development of a greater number of individual practitioners and the people that they care for. We have responded to the national shortage of highly qualified midwives by engaging directly with our clinical partners to co-create an NMC

approved midwifery programme with routes that support apprentices and direct entrants. One of the students to graduate this year, Sophie Amos, a final year student on the University of Winchester’s Bachelor of Nursing (Hons) Adult Nursing degree course, was one of only 10 students in the UK to be shortlisted for the 2023 Student Nursing Times Outstanding Contribution to Student Affairs Award.

QUALITY ASSURING THE STUDENT EXPERIENCE At the heart of what we provide is an excellent academic experience for our students. All our courses work through rigorous internal quality assurance processes to ensure the curriculum is relevant and intellectually stimulating and to closely monitor student experience and outcomes. This also involves working with our students through both formal student feedback, such as the Student Academic Representation scheme and programme evaluation, as well as informal ways staff and students work together to continually improve our courses. The National Student Survey (NSS), which is run by IpsosMori on behalf of the Office for Students, is another opportunity for students to feedback on their course experience. There were some areas where student satisfaction was particularly high, including the timeliness of assessment feedback which was ranked 20th out of 130 institutions and students feeling they had the right opportunities to give feedback on their course, which was in the top quartile of the sector. This success follows several years of crossinstitutional focus on these areas to drive improvements.

Annual Report and Financial Statements 2022-23

Public Benefit - To Advance Knowledge Research and innovation are integral to the transformational education the University provides. The University has areas of research strength across a range of disciplines. Research inspires and informs our students and we endeavour to ensure both undergraduates and postgraduate students have access to current and relevant research and that they learn the skills with which they can develop as researchers themselves. In the 2022-23 academic year, the University received increased government funding from UK Research and Innovation (UKRI) following successive improvements in the Research Excellence Framework (REF) and Knowledge Exchange Framework. This investment has supported advancements in postgraduate research grants, Open Access publishing, and knowledge exchange. Throughout the year, we have consulted on our new Research and Innovation Strategy 2023-28, which will be launched shortly.

RESEARCH GROWTH The University entered more than double the number of staff into the REF in 2022 compared to the previous REF exercise. This contributed to a significant increase in institutional research power, representing one of the top 20 highest increases nationally. Our proportion of 4* research, judged to be world leading in terms of originality, significance and rigour has increased threefold since the last REF in 2014. Due to the improved REF submission, the University’s Research England funding rose to £1.8m in 2022/23 compared to £1.1m in 2021/22. Mainstream Quality Related Funding (QRF) rose 75% to £1.5m.

HR EXCELLENCE IN RESEARCH The University has retained the prestigious HR Excellence in Research Award, recognising the support it gives to career development of researchers. The University has held the HR award since 2016 and has retained it following a rigorous external review.

KNOWLEDGE EXCHANGE The University has made steady progress in fostering knowledge exchange opportunities and activities, maintaining the steady increase in our Contract Research and Consultancy income, funding support for sixteen entrepreneurial ventures as well as student entrepreneurship. Over the last 12 months the University has raised its profile in the local community and regional economy. Last year, the University became a founding partner of VentureFest South (VFS), one of the UK’s largest innovation festivals. VFS celebrates the innovative businesses and ecosystem that we have in the south of England through a series of events culminating in a showcase festival in November. This is a great platform for the University to play a leading role in supporting the region’s economic prosperity.

RESEARCH IMPACT AND PUBLIC BENEFIT • Long Covid Study The University has taken part in a new study to find out if low levels of movement may benefit the 1.9 million UK sufferers of long Covid. The University partnered with the University of Gloucestershire and the NHS on a study to investigate the effects of uninterrupted sitting on health of people with long Covid. The study came out of research that University of Winchester PhD student Nick Hudson was doing on physical activity and sedentary behaviour and the study began with referrals from local GP surgeries and the Southern Health Long Covid Clinic. • St Vincent Botanical Gardens The contribution to the world of botany made by enslaved Africans and indigenous people on the Caribbean Island of St Vincent is now being fully recognised thanks to research by Dr Christina Welch, Reader at the University. In May the St Vincent Botanical Garden, the first botanical garden in the western hemisphere,

opened a new pop-up exhibition explaining its history. It tells the story of how Scottish horticulturist Dr Alexander Anderson, the superintendent of the gardens 1785-1811 used not only the labour but the knowledge of the enslaved people to create a globally important plant collection covering 20 acres. The project has been nominated for the 2023 THE Awards in the category for Research Project of the Year: Arts Humanities and Social Sciences. The research was one of 10 projects funded by the Humanities Research Council under the umbrella title Hidden Histories of Environmental Science. • The 878AD Museum University of Winchester experts helped set up 878AD, a new museum in Winchester run by Hampshire Cultural Trust, which opened in November 2022. It recreates a key moment in Winchester’s history when the Viking invaders are advancing on the city and the Anglo-Saxon way of life is under threat. Visitors are taken back to the ninth century through the world of the video game franchise Assassin’s Creed Valhalla, cinematic audio-visual projection and live performances by actors. Several University academics worked on the content for the museum, and Professor Ryan Lavelle, Professor Bill Lucas and Professor Christopher Mulvey are members of the advisory board. There is a great interest in this period of history and that has been boosted by the success of the Saxons vs Vikings TV drama The Last Kingdom, on which Professor Lavelle acted a historical advisor. After the success of The Last Kingdom, Professor Lavelle was recruited as an historical advisor by Ubisoft, makers of Assassin’s Creed, at the same time as the Cultural Trust came to him for help with their plans to make more of Winchester’s AngloSaxon heritage. Professor Lavelle was able to bring the two parties together and the result is a visitor attraction which combines history-based education with the excitement of video games.

St Vincent Botanical Gardens

878AD Museum

Annual Report and Financial Statements 2022-23

Public Benefit - To Serve the Common Good Since its foundation in 1840 by the Church of England, the University has been driven by its mission to benefit the city and region through transformational education. Our foundation values and mission are still at the heart of who we are and what we do.

• improve our recruitment and admissions activity to ensure equity of access onto our courses; and

Our graduates go on to serve the common good in a variety of ways. We make a significant contribution to meeting the national need for highly qualified nurses, teachers, police officers, social workers and allied health professionals. Our graduates take their creative and problem-solving skills, imagination, energy and enthusiasm into every sector of the economy, including the arts and business.

In 2021, the University launched the First Star Scholars programme for a cohort of 30 care-experienced young people to join us on a four-year programme focusing on academic attainment through a series of Summer Schools and monthly Saturday Schools. In summer 2023, the cohort completed their GCSE examinations following a programme of English and Maths tutoring under the scheme. The cohort maintains engagement with the programme and have begun working towards the Level 4 Diploma in Learning, Development and Social Empowerment.

We also seek to serve the common good for those who need it most. We are proud to be a University of Sanctuary, having supported 58 students from 21 countries over the years, including most recently, students from the Ukraine. From September 2023 we became one of just two UK universities to offer, in partnership with Refugee Education UK, a new Sanctuary Scholarship to a displaced person from outside the UK.

CHAMPIONING ACCESS AND PARTICIPATION IN HIGHER EDUCATION We are deeply committed as a University to actively encourage and support all students who have the academic potential and ability to progress to higher education. In Spring 2023, the University volunteered as one of forty English higher education providers to participate in the initial pilot of the new Access and Participation Plan (APP) introduced by the Office for Students. A whole-university approach was taken to assess the performance of access and participation against the new Equality of Opportunities Risk register (EORR) developed by the Office for Students. Under the University’s new APP we have committed to: • work with local communities to increase the low rates of pre-16 attainment and access into higher education;

• provide flexible and alternative pathways for progression to university that support the local skills gap.

In summer 2023, in partnership with a local inner-city junior school based in Southampton and the CoachBright social mobility charity, we developed and piloted an academic coaching programme to support a cohort of 30 Year 5 pupils. We employed student volunteers, trained by CoachBright, to deliver a series of Maths and Literacy face-to-face workshops culminating in an on-campus celebration event at the University. Previous independent evaluation of CoachBright programs conducted in 2022 by ImpactEd indicated positive changes were observed across all social and emotional skills for CoachBright pupils, with the highest increase being for metacognition. The impact report of the project found that the number of pupils who agreed or strongly agreed with the statement ‘When I feel like giving up, I know how to keep myself going’ increased from a total of 68% pre intervention to 81.4% post intervention. The cohort was split, with approximately half being supported with Maths coaching and the other half Literacy (Reading). The report also found that enjoyment with both Maths and Literacy increased during the course of the programme. Pre-programme 63.3% of pupils agreed or strongly agreed that they enjoyed Maths, but this increased to 87.5% at the end of the programme. Similarly, pre-programme 56.3% of pupils agreed or strongly agreed

that they enjoyed reading this increased to 78.9% at the end of the programme. As founders of the Service Children’s Progression (SCiP) Alliance, the University provides events and activities to support veterans, spouses and children from military service families access higher education via tailored activities and events. The SCiP Alliance established a Hub Network to support practitioners locally, with 12 Hubs established across the UK and 891 members. Since its launch in 2019, there have been over 1500 practitioner engagements with the Thriving Lives Toolkit, an accessible evidence-based framework and CPD resource for supporting Service Children in school settings. We offer financial and support packages to care-leavers, estranged students, young adult carers, students seeking sanctuary and Gypsy Roma Traveller Showman and Boaters (GTRSB). Packages take account of background via contextualised admissions, provide designated support staff, access to year-round housing and financial support. All students in receipt of one of these support packages, including income-based bursaries, are given transition support and access to student buddying schemes. Last year, we also extended a support package, including accommodation and fee waivers, for a small cohort of students from Afghanistan. Students from low-income families can also access our income-based bursaries. Students on our targeted support packages are also eligible to access the income-based bursaries if they meet the criteria. The bursary is evaluated each year with evidence suggesting that students find financial support reduces anxiety and enables them to actively engage in their studies. The University has an established Compact Scheme with over 40 Compact Partners (local schools and colleges) enabling Compact applicants from widening participation backgrounds a guaranteed offer or invitation to interview (dependent on admissions procedure for chosen course), a place in student housing, support with transition, £100

Annual Report and Financial Statements 2022-23

cash bursary upon entry and, in some instances, a lower tariff offer. In the last four UCAS cycles (2018- 2022), we received over 1557 Compact applications from 1355 applicants, of which 659 enrolled. Of those, 21.3% were from disadvantaged backgrounds (IMD Q 1 or 2 postcodes). Each year we recruit a growing number of students from widening participation backgrounds onto our foundation year courses. In 2022/23, 74% of our foundation year students come from a priority WP target group, 41% are first-infamily to attend the university and over 27% are considered mature on entry. We value the ability to offer students who would have traditionally struggled to access higher education a specialised programme that better prepares them for degree level study in a university environment. We fear that without this route, these students may have otherwise failed to access HE or dropped out without the additional tailored support. In March 2022, the University joined a coalition of more than 30 organisations and individuals to launch the Young Carers Alliance, a new network which aims to provide a stronger collective voice for young carers and those who support them.

BUILDING STRATEGIC PARTNERSHIPS IN THE REGION Closer to home it has always been our aim to forge enduring, impactful partnerships and make a valued and worthwhile contribution to the community around us. This is part of our mission to serve the common good, and to create interesting and relevant opportunities for our students. In the last 12 months we have forged some new strategic partnerships to develop a coordinated, collaborative and innovative approach to meeting the skills needs of the city and region. This not only helps the region to flourish but also provides valuable opportunities and experience for our students to succeed. Partnership with Hampshire Hospitals NHS Foundation Trust Building on years of collaboration, the University of Winchester and Hampshire Hospitals NHS Foundation Trust (HHFT) signed a new partnership agreement, during the week which marked the 75th anniversary of NHS in July. The partnership will secure educational opportunities for both University students with Hampshire Hospitals, and hospital staff at the University.  Through the partnership, nursing and physiotherapy students in the University’s Faculty of Health and Wellbeing are provided with

the chance to gain hands-on experience whilst on placement in a variety of HHFT departments and occupations, resulting in graduates with the skills and competencies to deliver outstanding healthcare services. Winchester Books Festival The University was a founding partner in the first Winchester Books Festival which took place in April 2023 and saw over 1,200 people attend events over three days. The University hosted two events - Marc Morris talking about his latest work, The Anglo-Saxons: A History of the Beginnings of England, Rebecca Abrams speaking about, Licoricia of Winchester: Power and Prejudice in Medieval England: The Rise and Fall of a Remarkable Jewish Businesswoman, and author and top lawyer, Marina Wheeler, discussing her family memoir My Mother, Partition, and the Punjab. Judith Heneghan, Senior Lecturer in Creative Writing at the University, hosted a discussion, entitled How to Get Published, at the Milner Hall. The panel included Hampshire author Claire Fuller, who studied for her MA in Creating Writing at the University and received an honorary doctorate in October 2022. University students were involved in the running of the festival as well as producing films of the event and interviews with authors. Theatre Partnership In February 2023 the University became the Principal Education Investing Partner for the arts and education charity Play to the Crowd, which runs the city’s main performance space, the Theatre Royal. The five-year partnership will provide unrivalled opportunities for students at Theatre Royal Winchester and the Hat Fair outdoor arts festival, providing vital learning and experience for future theatre makers and performers. The partnership was celebrated with an event at Theatre Royal Winchester when guests were treated to a short performance from students on the University’s Musical Theatre degree course of ‘Being Alive’ from Stephen Sondheim’s Company.

Pictured: Partnership agreement signing with HHFT to celebrate 75 years of the NHS

Annual Report and Financial Statements 2022-23

Environmental Sustainability The University is committed to environmental sustainability in support of the United Nations Sustainable Development Goals. The University has delivered significant reductions in both electricity and gas usage since 2006/07, with a 45% reduction in gas use per square metre of floor area and an 11% decrease in electricity use per square metre over the same period. Throughout 2022/23, the University has continued to make strides in reducing its carbon footprint and improving environmental sustainability on campus, including across its energy use and associated carbon emissions: 2% decrease in energy consumption used to calculate emissions (kWh) 11% decrease in gas consumption 11% decrease in Scope 1 emissions

The programme was completed in 2022/23 and has seen the replacement of 35 gas boilers with low energy air source heat pumps; a lighting upgrade to replace existing older-style lighting with low energy LEDs; an upgrade to the Building Management System to optimise energy consumption in buildings; and the installation of two large solar photovoltaic arrays designed to produce on-site electricity generation at peak times.

WASTE AND RECYCLING The University has achieved zero waste to landfill since 2013 and the last few years have seen significant improvements in its recycling rate, with recycling rates for 2022/23 reaching 70% of its total waste generated. This increase in recycling has been helped by food waste recycling being introduced in all on-campus accommodation since September 2021.

The installation of heat pumps on campus have seen a large reduction of 11% in gas consumption over the last year. There has been a slight increase of 1% in carbon emissions for scope 1 & 2 per square metre of floor area in 2022/23 compared to the previous academic year. This is mainly due to the generation emissions factor for grid electricity increasing for 2023 compared to the previous year.

RENEWABLE ENERGY The University has used 100% renewable, zero carbon electricity since 2008. The University also has solar panels installed across campus, generating 4% of its total electrical consumption.

FLEET VEHICLES By the end of 2022/23, 65% of fleet vehicles had been switched to electric vehicles as part of our journey towards our target of net-zero carbon emissions from fleet vehicles by the end of 2025/26. This is a significant increase on the previous year, when 48% of fleet vehicles were electric.

PUBLIC SECTOR DECARBONISATION SCHEME In 2020/21, the University was awarded a grant of £3.12m from the Public Sector Decarbonisation Scheme, to help us to become one of the most carbon-efficient universities in the UK. This signalled the start of our significant capital investment programme in innovative low carbon plant and equipment.

Annual Report and Financial Statements 2022-23

GO GREEN WEEK 2023 The University hosts an annual Go Green Week in collaboration the Student Union every spring. The most recent university Go Green Week featured a full and exciting programme of activities including a plastic pledge event, a climate anxiety coffee session, coffee cup giveaway and an exciting active travel showcase.

BLACKOUT – ENERGY SAVING CAMPAIGN More than 20 students and staff joined a campus Blackout event in January 2023. The first Blackout event since 2019 (due to the pandemic), this major exercise across King Alfred and West Downs Quarters highlighted the positive impact that small, collective switch-off actions can have on the University’s carbon footprint. Teams of student volunteers, led by staff from the Estates and Facilities department, walked around the University and switch off non-essential small power equipment left on that evening in office areas and teaching rooms - including lights, computer monitors, non-networked printers, mobile phone chargers, and PC speakers. Energy usage during the Blackout evening was measured and compared to a comparable evening to demonstrate the real savings. 11.7 tonnes of CO2 per year could be saved that could be achieved with just a few changes to the way we work and switching off equipment that does not need to be left on.

PEOPLE & PLANET LEAGUE TABLE Each year, People and Planet (the UK’s largest student campaign network) release a University League table ranking all UK universities by environmental and ethical performance. In the 2022/23 league table the University of Winchester successfully achieved 2:1 class university statusranking 33rd out of 153 universities.

The University also finished in the top ten of all universities in the Energy Sources ranking of the league table.

PLASTIC FREE UNIVERSITY STATUS The University was officially awarded Plastic Free University status from national charity Surfers Against Sewage (SAS) in 2022. This award of ‘Plastic Free Communities’ Status highlights the work and commitment as an institution we have made to tackling single-use plastics (SUP). It by no means signals we are plastic-free, and we do not claim to be, but we are clear that we view SUP as a problem and have made a commitment to do what we can feasibly to remove them from our operations. Regular litter picks have also been helping in support of the Plastic Free University campaign, with staff and students regularly taking part.

BAG IT UP Between April and June, the University runs an end-of-year move-out project which supports students to donate unwanted items to a good cause when they move out of halls of residence. Students are provided with bags and stickers for clothing, bedding, homeware, kitchenware, books, and other items such a non-perishable food. Bags are collected weekly from halls, and with the help of student volunteers, sorted, and donated to local charities around Winchester.

Annual Report and Financial Statements 2022-23

Facts and Figures TOTAL INCOME

ACADEMIC STAFF (FTE)

2022-23

2021-22

£85.6m £86.3m

358 337

CAPITAL EXPENDITURE

PROFESSIONAL SERVICE STAFF (FTE)

2022-23

£4.1m

508

£6.4m

489

2021-22

INTERNATIONAL FULL-TIME POSTGRADUATE FEE INCOME

TOTAL STUDENT NUMBERS (FTE)

2022-23

2021-22

£2.24m £1.82m EBITDA* 2022-23

£5.2m 2021-22

£12.7m * EBITDA = earnings before interest, tax, depreciation and amortisation (and adjusting for capital grants released and changes to pension provision within staff costs as reported by the Office for Students).

7,069 7,520

Annual Report and Financial Statements 2022-23

Procurement and Value for Money The responsibility for value for money is delegated to the University’s Executive Leadership Team. The Board’s responsibility is discharged through proper scrutiny of Winchester’s affairs and through exercising appropriate oversight of strategies and policies. We believe that there is a clear relationship between how we create value and the value for money we provide to stakeholders. Value for money is about maximising the value generated from our financial capital. Direct cost savings are achieved through active contract engagement, management and robust tender processes. The University promotes purchasing professionalism in engaging with its suppliers. We are responsible for establishing and managing effective commercial arrangements to deliver our

purchasing requirements at best value for money against time, quality and budget. We also benefit from a number of local and national purchasing consortia and partnerships to secure competitive commodity prices and discounts on our strategic and high-spend areas of our business. Through these consortia and frameworks, we are able to realise significant savings and to strongly influence supplier behaviour. For example, we contracted approx. £3m of spend through our Southern Universities Purchasing Consortium (SUPC) framework contracts in 2022/23, realising over £470k of savings. The majority of our SUPC addressable spend is associated with computer supplies and services, the remainder based on furniture, library, travel, catering and publications. These organisations consistently offer the sector

value for money, often through rates specifically negotiated for the Higher Education sector. By channelling approximately 30% of the value of our addressable spend through framework agreements arranged by higher education and public sector purchasing consortia, we ensure that our suppliers have been stringently reviewed for anti-modern slavery compliance.

Annual Report and Financial Statements 2022-23

POLICY AND STRATEGY The University of Winchester’s procurement strategies are well developed and aligned with our sustainability policies and drive for value for money. We have robust procurement policies, and sustainability has been embedded into these practices. Staff involved in buying activities have been fully trained on our procurement approach and how this should align with our environmental objectives. Limiting the impact of our procurement activity on the environment is at the forefront of all our engagements with our supply markets. We consider the ‘cradle to grave’ costs of our activities and strive to embed these in our assessment of all procurement activity. The strength of these policies is evidenced over the past year, as we have continually selected suppliers through competitive processes using award criteria heavily weighted in support of environmental and sustainability criteria in line with our values. For example, we tendered and awarded our new Gym Refurbishment contract at the start of 2023. The main driver for this contract was to enhance the student experience by providing the latest equipment and supporting software and our sustainability criteria ensured we also achieved energy efficiency and product sustainability. Having carried out a comprehensive tender exercise we were delighted to award the contract to a supplier that not only delivered value for money but addressed our environmental concerns. On average, recyclable materials made up more than 95% of the weight of each product; the disassembly system ensured a simple recovery of raw materials at the end of the product life cycle thus addressing our ‘cradle to grave’ considerations and even the packaging could be re-used several times. From an energy efficiency perspective, the supplier was able to demonstrate power saving operating modes and even offered ranges of self-powered product versions capable of generating their own energy in order to work. Over the last 12 months the University has carried out 14 full tenders. All contracts have been carried out in line with Public Contract regulations ensuring the

University remains fully compliant in these areas of expenditure. They have been awarded against value for money criteria that focused on whole life costs, quality and service levels as opposed to price alone.

SUPPLIER ENGAGEMENT Supplier engagement is carried out through tender user groups. It forms an extremely important part of the value for money process, ensuring end user expertise is combined with a commercial professional procurement approach. When carrying out a tender, a user group is formed to ensure that all key stakeholders are consulted and involved in the process. An example of this is the recent Creative Agency tender. Here a group of marketing professionals were brought together to ensure that agencies were assessed against key criteria that delivered the best in terms of creativity and competitive pricing.

FAIRTRADE CONTRACTS The University of Winchester has a strong reputation of supporting many Fairtrade initiatives, particularly in catering and hospitality. We have been able to utilise framework contracts which have delivered a host of products to staff and students. We have also set out to establish these initiatives in other areas, such as clothing. It is our aspiration to use environmentally and sustainably resourced clothing wherever possible. We are committed to the principles of sustainable development, environmental management and protection of biodiversity.

ELECTRONICS WATCH We continue to be an affiliate member of Electronics Watch, an organisation that aims to improve working conditions in the global electronics industry. The decision was made to ensure that employees working for companies supplying IT equipment to the University are treated fairly, and that the companies themselves operate to an acceptable ethical standard. Electronics Watch aims to help public sector organisations by scrutinising arrangements carefully in areas of the world where their ICT and electronic products are made. Becoming a member of Electronics Watch is testament to our

commitment to meeting the highest possible ethical and social standards when it comes to procurement.

MODERN SLAVERY Our Modern Slavery Statement satisfies the requirements of Part 6, Section 54, of the Modern Slavery Act 2015. The University of Winchester’s Financial Regulations, Procurement Policy and Procedures and Ethical Investment Policy state our commitments to the highest standards of ethical conduct in all activities, along with making continuous improvements in this area. We do not engage in, or condone, the practices of human trafficking, slavery or forced labour. We are committed to improving our business practices to combat modern slavery and human trafficking and to ensure that we are not complicit in any human rights violations. We are committed zero tolerance of slavery and human trafficking or child labour practices. We mitigate the risk of modern slavery occurring in our workforce by ensuring that directly employed staff are recruited by following robust HR recruitment policies and checks. There is a whistle-blowing policy in place for members of staff to raise any concerns about wrongdoing. Staff employed on a temporary staff basis via agencies are only recruited through established sources who can provide assurance that they comply fully with the requirements of legislation relating to the rights and welfare of their candidates and employees. Our Ethical Investment Policy has been developed to reflect our commitment to ensuring that our investments are not complicit in any human rights violations. To this extent, the University does not knowingly invest directly or indirectly in organisations that breach human or animal rights, or that are in breach of the Modern Slavery Act 2015. Our Modern Slavery Statement is published on our website and reviewed on an annual basis.

Annual Report and Financial Statements 2022-23

Understanding the University’s Risks The University defines risk as the potential effects of uncertainty on achieving objectives, which can take the form of adverse consequences or unexpected opportunities. As with most institutions, risks are inherent in all activities and the University accepts new risks in pursuit of its strategic objectives. Effective risk management is about ensuring all significant, relevant risks are understood and prioritised as part of the University’s standard management practice. To create long-term value, we must anticipate and manage the risks that will create threats for us and

RANK

our stakeholders, whilst capitalising on new opportunities offered by an everchanging world. To effectively manage our risks, the University must maintain a dialogue with internal and external stakeholders. The current risks are reported in the University’s Risk Register, which includes the most significant business and sector risks, as well as those that are specific to the University. The Board of Governors has delegated authority to the Risk and Audit Committee to oversee risk management, including monitoring of the University’s Risk Register. This ongoing review enables us to identify material issues that are

most likely to affect value creation, strategic objectives, service delivery and assets. We undertake a systematic and methodical identification of key risks, and we identify measures to mitigate them. Whilst risk cannot be completely eliminated, the approach of the Risk and Audit Committee is to be ‘risk aware’ rather than ‘risk averse’, by accepting risks to protect strategic objectives. Included in this Report is the most recent update of our Risk Register with the top nine risks, presented to the Board of Governors on 5 July 2023.

RISK

RISK DESCRIPTION

RISK MANAGEMENT

Core business

The risk that Winchester fails to manage significant impacts on its ability to deliver core business functions.

During the year the risk focused on three primary elements: cyber security, power outage and industrial action. The sector continues to face cyber-attacks, with the University continuing to strength both our cyber infrastructure and culture in response to ever-changing threats. The perceived threat of power outages during the winter of 2022/23 was responded to robustly, with a University-wide business continuity group undertaking scenario planning and putting in place an action plan to respond in the moment to an outage. The industrial action comprising widespread strikes and action short of a strike, occurred throughout the year. Significant work was undertaken to minimise the impact of this action on students across the University.

Student outcomes

The risk that Winchester fails to deliver student outcomes and experiences that are acceptable to stakeholders.

The Office for Students identifies key student outcome metrics (the B3 conditions) which are part of the University’s Conditions of Registration. These are a key focus for the University. To ensure our continued strong delivery, course monitoring mechanisms have been put in place with regular reports and reviews generating action plans for improvements where identified. Student accommodation is a key element of the student experience. To ensure a good standard of living, preventative maintenance plans are in place for all accommodation along with an on-going refurbishment programme based on recent condition surveys.

Compliance

The risk that Winchester fails to comply with ongoing Office for Students Conditions of Registration.

With changes to the on-going Office for Students Conditions of Registration, the University has strengthened its already robust approach to monitoring compliance through the Education Committee, Senate and the Board of Governors, introducing new reporting mechanisms to ensure existing and new requirements are met. Investment in staff capacity has been made to assist in meeting the new requirements related to Data Futures. The University has engaged with the Office for Students throughout the year in a number of consultation processes.

Annual Report and Financial Statements 2022-23

Financial sustainability

The risk that the University fails to manage its finances and remain a going concern.

Strong financial management is key to ensuring on-going financial success, in order to address the challenges of reduced home undergraduate student numbers in the context of a challenging student recruitment environment and increasing inflationary pressures. The University’s Strategic Plan has been developed to reposition the University’s portfolio and performance to reshape the academic provision, improving efficiency whilst also driving growth in student numbers, reversing the underlying trend of declines in areas of provision. Alongside a return to in-person campus events for prospective students, changes to the Open Day experience will attract more prospective students to the University. On-going fluctuations in Pensions remain a sector-wide challenge. We continue to monitor the pension landscape and to identify wider mitigations for risks to our financial sustainability, continuing to maintain a culture of cost-effective control and budget holder visibility.

Cyber Security

The risk that a security breach of University systems and network is compromised leading to loss of critical service and/or exposure of sensitive data.

We continue to preserve our close professional relationship with JISC, working with JANet and Cyber teams to share knowledge, review and mitigate sector-wide IT, information, and data security threats. We also have in place a continued service contract with an external provider. All these measures continue to improve our level of cyber security in an ever-changing and developing landscape.

Sustainable improvement in performance

The risk that Winchester fails to deliver sustainable improvement in the underpinning operations of the university that will facilitate easier access to critical data/metrics.

The University Strategic Plan sets out institutional priorities. These priorities and our performance against them are regularly reviewed at University Leadership Team, alongside the relevant policies and consideration of the allocation of resources. Any IT related investment is delivered through the Information Technology Governance Group. Investment also includes the introduction of new roles to deliver priorities, such as the recently introduced Data Futures Analyst role.

Student Recruitment processes

The risk that Winchester fails to manage the required processes around student recruitment and registration.

Key improvements have been made to strengthen the process of recruiting and registering new students, which emerged as a risk following measures adopted during the pandemic. The refreshed process has significantly improved the experience for new students before and on arriving at the University whilst also ensuring compliance requirements are met.

Staff recruitment and retention

The risk that Winchester fails to attract and retain high quality staff.

Post-pandemic, the competition to attract and retain high quality staff has increased. As part of a review of the recruitment process, significant changes were made to ensure prospective candidates were aware of the employee value proposition of the University. The introduction of a more flexible approach to hybrid working has assisted in both attraction and retention. Recognising the rising cost of living, the 2023/24 pay review resulted in an increase of between 5% and 11% for all grades other than management. An element of this uplift was applied six months early to help existing colleagues in managing the impact of rising costs.

Government policy

The risk that Winchester fails to respond to the impact of government policy on the institution and wider sector.

Our scenario planning and financial models have anticipated potential Governmental policy changes. We maintain close and regular engagement with Universities UK and other sector groups. We monitor potential policy changes and plan accordingly.

Annual Report and Financial Statements 2022-23

Statement by the Directors in Performance of their Statutory Duties in Accordance with S172(1) Companies Act 2006 The Companies (Miscellaneous Reporting) Regulations 2018 (Reporting Regulations 2018) require that large private institutions include additional corporate governance reporting disclosures in their strategic report and directors’ report, effective for financial years beginning on or after 1 January 2019.

Large private institutions are now required to include in their strategic report a separate statement describing how the directors have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 when performing their duty under section 172. The Board of Governors of the University of Winchester consider, both individually

and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the University of Winchester for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 July 2023.

Annual Report and Financial Statements 2022-23

Trade Union Facility Time The Trade Union (Facility Time Publication Requirements) Regulations 2017 place a legislative requirement upon relevant public sector employers to collate and publish, on an annual basis, a range of data on the amount and cost of facility time within their organisation. The data below covers the relevant period of 1 April 2022 – 31 March 2023 and includes both of the University’s recognised trade unions: UCU and UNISON.

RELEVANT UNION OFFICIAL Number of employees who were relevant union officials during the period

Full-time equivalent employee number

PERCENTAGE OF TIME SPENT ON FACILITY TIME 0%

1% - 50%

51% - 99%

100%

PERCENTAGE OF PAY BILL SPENT ON FACILITY TIME Total cost of facility time Total pay bill (April 2022 to March 2023) Percentage of the total pay bill spent on facility time*

£46,745 £47,688,997 0.1%

PAID TRADE UNION ACTIVITIES Time spent on paid trade union activities as a percentage of total paid facility time** * Calculated as: (total cost of facility time / total pay bill) ** Calculated as: (total hours spent on paid trade union activities by relevant union officials during the relevant period / total paid facility time hours) x 100

0.0%

Annual Report and Financial Statements 2022-23

Financial Review This Financial Review puts the year in perspective and outlines our financial environment, finance strategy, financial performance and our future outlook. The Financial Statements reflect the current challenging financial environment, which is impacting on the finances of both the University and its staff and students during the ‘cost of living crisis’. We report a Comprehensive Income and Expenditure Surplus of £8.2m, which includes an actuarial gain in respect of pension schemes of £11.6m, and an underlying operating deficit of £3.4m (4% of income) excluding this actuarial gain. We have worked through the year to minimise the deficit which arises from a challenging student recruitment environment in September 2022, following the difficult years of the global pandemic. High inflation combined with fixed tuition fees for home undergraduate students, which in real terms have reduced significantly in value, have led to a very challenging environment for the higher education sector. Although inflation has reduced considerably, it appears unlikely that this or any future government will increase tuition fees for home undergraduate students in the medium term. Although facing the same challenges as the rest of the sector, we have entered this difficult period in a strong financial position. The short-term financial viability of the University is secure: cash reserves are strong and significantly above that required for operational activities. We have more cash than outstanding loans and have repaid £5.5m of loan debt in the last three years, including full repayment of our Allied Irish Bank (AIB) loan eight years early in 2023. The effect of increases in the Bank of England Base Rate has been mitigated by most of our bank loans being on a low fixed rate until 2028. Our refreshed strategy sets a course to transform our education and our operations enabling us to take the measures needed to

operate more efficiently and develop our academic portfolio at undergraduate and postgraduate taught levels to attract more students, both home and international. The challenges we face are apparent in our financial Key Performance Indicators (KPIs). Our financial KPIs reflect those used by our funders and lenders. EBITDA refers to the Earnings Before Interest, Tax, Depreciation and Amortisation. Earnings are taken before FRS 102 pension adjustments as is common within the sector. This KPI is a strong measure of the University’s ability to generate cash since it is less susceptible than total surplus/(deficit) to changes in non-cash movements (such as depreciation). The EBITDA outturn of £5.2m is £7.5m lower than 2021/22. Whilst EBITDA can be used as a measure of cash generation, net cash inflow from operating activities provides a clear marker of the cash we are generating each year to service our investing and financing activities. The net cash inflow from operating activities for 2022/23 is £3.7m compared to £12.9m in 2021/22. Despite our headline deficit, we have generated cash from our operations in 2022/23. However, both measures are significantly lower than 2021/22 and underline the impact of the current challenging financial environment.

Staffing costs as a percentage of income is reported widely within the higher education sector. Income from home undergraduate tuition fees is frozen but pay inflation continues to rise. This has contributed to a headline figure increase to 59% this year from 58% in 2021/22. As is detailed in the Financial Performance, underlying staff costs have increased during the year, whilst pension actuarial adjustments have reduced. The net cash to borrowing is derived from the total of cash and investments less the capital amount of bank debt outstanding at the year-end. We currently have a net cash position (i.e. cash exceeding borrowing) of £8.1m, which although lower than the £10.2m in 2021/22, remains a healthy position to be in. Total cash and cash investments at the end of year was £36.1m, a reduction of £3.2m when the repayment of our Allied Irish Bank loan is excluded, and this is above operational requirements. This continues to provide us with the financial flexibility and headroom to be able to invest in our infrastructure, staff and future student offer.

KPI HIGHLIGHTS

2022-23

2021-22

CHANGE

Surplus/deficit (£m)

(3.4)

0.1

(3.5)

EBITDA (£m)

5.2

12.7

(7.5)

Net cash inflow from operating facilites (£m)

3.7

12.9

(9.2)

Staff cost % income

59%

58%

Net cash/(borrowing) £m

8.1

10.2

(2.1)

Annual Report and Financial Statements 2022-23

Financial Environment Although the University remains in a strong financial position, the financial environment in which we operate is challenging and is likely to become even more so. As detailed in the Financial Performance summary above, this year 87% of our tuition fee income derives from home full-time undergraduate students. Recruitment of these students is fundamental to our financial health and sustainability. There is still strong demand for higher education, and for traditional undergraduate courses, particularly in the 18-year-old market. However,

there is a small indication that this may reduce slightly in the coming years, or that demand may move to other kinds of study, such as degree apprenticeships. For 2023 entry there has been a national decline in the number of 18-year-olds holding university places compared to 2022, and an increase in the proportion holding places in higher tariff institutions. This decline is therefore being felt in some parts of the higher education sector including University of Winchester. The main tuition fee cap continues to be frozen at £9,250 and will remain up to and including 2024/25, by which

time there will have been no increase in 7 years. For much of this time, inflation has been at historically low levels and therefore the cap being held at £9,250 has been manageable through internal cost management measures. However, the recent surge in inflation, which rose steadily from just under 1% at the beginning of 2021 to a high of over 10% by October 2022, has made managing our cost base extremely challenging. At the time of writing, inflation is falling and is at 6.7% for September 2023; however, the forecast is that it will still be twice the Government’s 2% target well into 2024.

Finance Strategy The financial strategy is designed to empower the University of Winchester to exceed its potential and achieve our Strategic Plan, and contains these five principles: 1. Long-term viability and matching resources with objectives 2. Maintaining productive capacity to meet current objectives 3. Financing development and investment 4. Evaluating strategic alternatives and managing risks 5. Integrating financial and other corporate strategies

In light of the current financial environment the Finance Strategy outlines the four strategic priorities for the year ahead. Financial sustainability - to remain financially sustainable and generate sufficient cash to support the strategic objectives and provide institutional sustainability. Operational efficiency - to continuously improve efficiency and effectivenessby managing the cost of operations and delivering value for money whilst continuing to maintain a sustainable recurrent investment in the academic, corporate and support operations.

Capital investment - to ensure the maintenance of the estate and future strategic investment to support the delivery of excellence in education. To also ensure capital investment is at a level that will not put the University at financial risk. Treasury Management - to assess and manage risk in all of University’s growth and development activities and to operate sound treasury management as outlined in the Treasury Management Policy. In order to assess performance against the Financial Strategy, the Board of Governors monitors relevant KPIs, some of which are outlined within the next section.

Annual Report and Financial Statements 2022-23

Financial Performance INCOME Total income for the year was £85.6m, a £0.7m (0.8%) reduction on 2021/22 (£86.3m), primarily due to a 5% reduction in tuition fees and education contracts (which accounts for three quarters of total income).

has been largely offset with increased postgraduate income which increased by £0.4m (23%). The reduction in full time undergraduate international students was largely a decline in the Norwegian international student market post pandemic. Funding body grants income increased from £3.8m to £4.8m, primarily due to an increase in Research England Quality Related (QR) funding following our successful Research Excellence Framework (REF 2021) outcome. Research grants and contracts income remained unchanged at £0.4m.

Full-time home tuition fees accounts for 87% of our tuition fee income, and we have seen a reduction in student numbers from 6,180 to 5,846 (-5.4%) as this market segment has become increasingly competitive. Full time home undergraduate fee income reduced by £2.8m (5.3%) from £52.6m to £49.8m. Apprenticeship income has, however, continued to grow, and now accounts for £2.5m of income, an increase of £0.5m (23%) on 2021/22.

The position regarding international recruitment was mixed. Full time undergraduate international income reduced by £0.6m (16%) to £2.9m but

Other income increased by 7% from £13.6m to £14.6m, assisted by an increase in conference business with activity resuming to pre-Covid levels, and investment income increased from £0.2m to £0.9m due to increases in the Bank of England Base Rate resulting in higher interest deposit rates.

EXPENDITURE Total expenditure for the year was £89.1m (2021/22 £86.2m), an increase of £2.9m (3.4%) on 2021/22.

Staff costs increased by 0.9% to £50.5m. This represents 59% of income and is little changed from recent years. Salaries increased by £3.7m (10.5%) from £35.2m to £38.9m. This increase is due to the 2022/23 pay award and early implementation of the 2023/2024 pay award (£0.9m), increments (£0.5m), and increases in the establishment FTE

(£1.3m). Also, included within the increase is £0.8m in the year-end outstanding annual leave provision due to the leave year being moved from the end of July to August. If excluded, the increase in basic staff costs is 9%. During the year the number of academic full-time equivalent staff (FTE) increased from 337 to 358. This increase is partly due to the maturing of health courses such as nursing, which now have three years of substantial undergraduate cohorts and two degree apprenticeships, and preparation for the introduction of Midwifery (beginning in January 2024). The number of administrative staff increased from 489 to 508. This increase reflects investment in strategic priorities such as the establishment of the international student success team, a strengthening of the research team to generate external research income, a reshaping of the HR function to proactively meet the needs of colleagues and the addition of key roles in data and planning in part to meet the requirements of Data Futures. These new roles were alongside the successful filling of previously vacant roles in an improved market for recruitment. Counteracting this increase in salaries has been a decrease in other pension costs from £11.2m to £7.5m. This is primarily due to the in-year adjustment in the Local Government Pension Scheme (LGPS) that reflects the difference between the current service costs and contributions made during the year being lower than last year (2022/23 £0.5m; 2021/22 £3.2m) and is due to increased deposit rates and life expectancy calculations. The volatility of in-year pension adjustments in the current economic climate is further shown by the provision in the University Superannuation Scheme, this year being a credit of £0.4m compared to the £1.1m charge in 2021/22. Other operating expenditure increased by 7.1% to £29.4m (2021/22 £27.4m) and reflects the current high inflation rate and the return to the full campus provision post Covid. Cost management continues to be integral to minimising increases in costs. The success of this

Annual Report and Financial Statements 2022-23

approach is demonstrated by this year’s other operating expenditure figure being just 2% (£0.6m) higher than five years ago (2017/18 £28.8m). Energy costs have increased by 2.3% from £1.7m to £2.1m; however, the large increases in the wholesale price of gas and electricity have been largely offset by forward purchasing. The installation of the air source heat pumps installed with £3.2m of capital funding from the Office for Students is forecast to reduce our energy costs by 7% and save 484 tonnes of CO2 per year, equivalent to a 29% reduction. Included within this year’s operating

expenditure has been the development of the Outpatients Hospital site and the progression towards submission of a planning application. Depreciation this year has increased by £0.4m to £6.7m. This is the first year of depreciation on the Public Sector Decarbonisation Works, primarily involving the installation of air source heat pumps which are now operational. The relevant depreciation charge is £223k. Interest and other finance costs remain unchanged on 2021/22 at £2.5m. Interest on bank loans increased by £210k due

to increases in the Bank of England Base Rate. However, the impact of increases in interest payments has been mitigated by only £10m of our loans being on a variable rate, with the remainder on fixed rate until 2028. This has resulted in the increase in bank interest being more than offset by the increase in interest receivable. The LGPS net interest on the defined benefit scheme reduced from £620k to £436k and is due to the overall financial obligations of the scheme being reduced.

Annual Report and Financial Statements 2022-23

Statement of Financial Position FIXED ASSETS Capital additions during the year were £4.1m. During the year we were awarded £5.8m of capital funding (to be received in 2023/24 and 2024/25) from the Office for Students to renovate, upgrade and redesign the Martial Rose Library. The total project costs are just over £8.0m and in 2022/23 there was £0.6m of expenditure relating to the replacement roof covering and building services upgrades in preparation of the main works due to commence in the Autumn of 2023. This project will refurbish and upgrade the building, improve the quality of the student experience and will enable us to grow our academic portfolio and student numbers in high-cost subjects of strategic importance. It will particularly support the growth of our health provision including nursing, a priority for the University and the NHS regionally. Other significant works undertaken during the year included: • The final costs relating to the Decarbonisation project (£321k) • Forensic Science improvements to the Laboratories in the Medecroft Building (£433k) • New music and sound recording studio in the Bowers Building (£227k) • University of Winchester Business School link building refiguration (£379k) • Replacement of ageing network switches (£284k). There were no significant disposals or impairments in the year and the net book value at the year-end is £203.7m (2021/22 £206.2m).

INVESTMENT PROPERTY AND OTHER INVESTMENTS A decision to invest in HampshireCommunity Bank (HCB) was made by the four local authorities, four universities including the University of Winchester, and one community interest company in 2015, following the presentation of a business case and all appropriate due diligence.

A community bank is a not-for-profit enterprise which benefits the local community by distributing any surpluses between the founding investors, which can then be used to support local services, and grants to the local area. It was expected that this fledgling company would become profitable and provide a reasonable return on investment. Payments were to be made by each investor in four tranches, of which three payments have been made. The fourth payment has not been made, due to lack of progress towards the bank obtaining a license, or in satisfying the expectations of our external assurance advisors that a successful application was a realistic prospect. As a result of this the University of Winchester has taken the decision to fully impair its investment of £100k in 2022/23.

CURRENT ASSETS Current assets decreased by £5m to £42.9m during the year. The main contributor to this reduction was the full repayment in 2023 of the remaining £2.5m Allied Irish Bank (AIB) loan. The £0.7m increase in trade and other receivables is primarily due to an increase in prepayments and income due on external contracts.

CREDITORS During the year we took the opportunity of repaying in full the remaining Allied Irish Bank loan, the outstanding balance being £2.5m with repayments due until 2031, and the loan being secured on the whole of the West Downs Student Village. This was possible at no penalty cost due to the recent increases in interest rates. This means that our only bank loans are now with Triodos Bank and that we have reduced our outstanding liability from £33.5m at the 31st July 2020 to £28.0m at this year-end, a reduction of £5.5m in the three years. Also, within creditors, trade payables have reduced by £0.6m and obligations under finance leases have reduced by £0.3m.

PROVISIONS The University has two main employee pension schemes, Hampshire Local Government Pension Scheme (LGPS) and the Teachers’ Pension Scheme (TPS) and an auto-enrolment scheme, our Higher Education Defined Contribution Scheme (HEDCS) held with Aviva. In addition, there are a low number (less than 50) in the University Superannuation Scheme (USS), the National Health Service Scheme (NHSBSA) and the Church of England Funded Pension scheme (CEFPS). The largest scheme is the TPS, which is a statutory, unfunded governmentdefined benefit scheme, and as such the University is not required to provide for any pension deficits arising in the fund. The LGPS is a funded defined-benefit scheme with assets administered by Hampshire County Council. The LGPS performed well during the year, closing with a net asset gain of £13.4m (2021/22 £26.6m gain), eliminating the liability and creating a £2.6m notional surplus that was not recognised in the 2022-23 financial statements. This shift in performance is a reduction in the value of our liabilities driven by the increases in the costs of government borrowing. There was a £0.4m decrease in the USS provision due to a revaluation of the deficit recovery payments based on increased rates of government borrowing.

CASH POSITION Although cash and investments decreased from £41.8m to £36.1m at the 31st July 2023, cash reserves remain high by historical comparisons and well above that needed for day-to-day operational requirements. We currently have a net cash position (i.e. cash exceeding borrowing) of £8.1m, which although lower than the £10.2m in 2021/22, maintains our strong financial position. All bank covenants were met at the date of the Statement of Financial Position and there is no concern over meeting the bank covenants in the 12 months following the date of the signing of the financial statements.

Annual Report and Financial Statements 2022-23

Statement of Board of Governors Responsibilities in Respect of the Strategic Report, the Directors’ Report and the Financial Statements The University’s Board of Governors, whose members are also the directors of the University for the purposes of company law, is responsible for ensuring that the strategic report, the directors’ report and the financial statements are prepared in accordance with the requirements of the Office for Students’ terms and conditions of funding for higher education institutions and Research England’s terms and conditions of Research England grant, together with other applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year and the University’s directors have elected to prepare the University’s financial statements in accordance with UK accounting standards and applicable law, including FRS102, the Financial Reporting Standard applicable in the UK. The terms and conditions of funding also require the financial statements to be prepared in accordance with the Statement of Recommended Practice (SORP) Accounting for Further and Higher Education institutions. Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the University and of the income and expenditure, gains and losses and changes in reserves for that period. In preparing each of the University of Winchester’s financial statements, the directors are required to: • select suitable accounting policies. and then apply them consistently. • make judgements and estimates that are reasonable and prudent. • state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in

the financial statements. • assess the University’s ability to continue as a going concern. • use the going concern basis of accounting unless this is not appropriate. Company law requires the directors to be responsible for maintaining adequate accounting records that are sufficient to show and explain the University’s transactions and disclose with reasonable accuracy at any time the financial position of the University. The directors are also responsible for such internal controls as they determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The directors also have a general responsibility for taking such steps as are reasonably necessary to safeguard the assets of the University and to prevent and detect fraud and other irregularities. The Board of Governors is also responsible for ensuring that: • Funds from whatever source that are for specific purposes are properly applied for the specific purpose. • Funds provided by the Office for Students, Research England, the Department for Education or any

other direct funding body are applied in accordance with the terms and conditions attached to the funds. • The University has appropriate financial and management controls in place to safeguard public funds, and funds from other sources and securing the economical, efficient and effective management of the University’s resources. The Board of Governors is responsible for the maintenance and integrity of the corporate and financial information included on the University’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Annual Report and Financial Statements 2022-23

Directors’ Report Our Governors The individuals who served on the Board of Governors in the period from 1 August 2022 to the date of approval of these financial statements is set out below: MEMBERS OF THE BOARD OF GOVERNORS

CHANGES IN 2022/23

Mary Edwards (Chair) Andrew Robinson (Vice-Chair) Professor Sarah Greer, Vice-Chancellor (ex-officio) The Revd. Prof. Elizabeth Stuart, Deputy Vice-Chancellor & Provost (ex-officio)

Resigned on 31 July 2023

Gavin Hunter, Chief Operating Officer (ex-officio) The Right Revd. Debbie Sellin, Bishop of Southampton and Acting Bishop of Winchester Jane Jessop

Resigned on 31 July 2023

The Right Revd David Williams, The Bishop of Basingstoke

Resigned on 31 July 2023

Dr Lesley Black (Professional Services Staff Governor) Dr Emma Page Professor Chris Gaskell Mark Thistlethwayte Dr Robert Gray (Academic Staff Governor)

Resigned on 31 March 2023

Andrew Smith Professor Emile Bojesen (Academic Staff Governor)

Resigned on 31 July 2023

Professor Edward Rochead Rae Tooth Charlotte Baker (Student Union President & Student Governor) Magnus Bashaarat Deepa Korea Thura KT Win Jonny Brason Alison Evans

Appointed on 30 September 2022

Charlotte Baker (Student Union President & Student Governor)

CLERK TO THE GOVERNORS Stephen Dowell

CHANGES IN 2022/23

Annual Report and Financial Statements 2022-23

Statement of Corporate Governance The University is committed to exhibiting best practice in all aspects of corporate governance. This statement details how the University has applied the principles set out in the Committee of University Chairs (CUC) Higher Education Code of Governance (September 2020) and the UK Corporate Governance Code issued by the Financial Reporting Council (July 2018), in so far as they relate to Higher Education Institutions. Its purpose is to help the reader of the Annual Report understand how the principles have been applied.

Legal Status and Public Benefit The University of Winchester is a company limited by guarantee, registered company number 05969256 and is an exempt charity under the terms of the Charities Act 2011 with its Governors as managing trustees. In accordance with Section 124 of the Education Reform Act 1988, the principal objectives of the University are related to the provision of Higher Education and the conduct of research. To support these principal objectives, the University also undertakes other activities including knowledge exchange, consultancy, and the provision of accommodation, catering and conference services.

In setting and reviewing the University’s strategy and activities, the Board of Governors takes into consideration the Charity Commission’s guidance on the reporting of public benefit and the supplementary public benefit guidance on the advancement of education. The University takes steps to ensure that it satisfies the Charity Commission’s public benefit requirements. As an exempt charity, the University’s Board of Governors have had due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and performing their duties. The Board of Governors has due regard to any detrimental harm that

may arise from the University’s activities and particularly the impact of campus developments on its immediate locality. The University aims to minimise this impact through extensive community discussion and consultation, in addition to working closely with Winchester City Council. The Board of Governors recognises that students are the principal beneficiaries of the provision of higher education whilst the public at large are beneficiaries of the University’s Research and Knowledge Exchange and community engagement activities. The University does not receive private benefit from its activities undertaken in pursuance of its purposes.

Responsibilities of the Board of Governors The Board of Governors meets at least five times a year. It is responsible for determining the University’s educational character and objectives and for ensuring compliance with the Office for Students terms and conditions of funding, for standards of institutional quality, for student experience and outcomes, for financial sustainability and accountability, and for access and participation. The Board of Governors is also responsible for ensuring the effective and efficient use of resources, ensuring that assets and solvency are safeguarded and for approving annual estimates of income and expenditure. The Board of Governors comprises people appointed under the University’s Memorandum and Articles of Association,

which were adopted on 16 March 2011. A copy of these can be found on the policies and procedures page of our website under: www.winchester.ac.uk/ aboutus/leadership- and-governance/ policies-and-procedures/ The Board of Governors comprises at least eighteen (but not more than twenty‐five) members who are drawn from the Winchester Diocese, the public, the private sector and from the University alumni. Members of the Board of Governors will also be elected/appointed from the University’s Academic and Professional Services Staff. Nominated governors are expected to be independent and not to act as representatives of those who elect/ appoint them. Diocesan members of the Board are appointees of the

Church of England by the Winchester Diocesan Synod. There are five ex‐officio governors. These are the Lord Bishop of Winchester, the Vice‐Chancellor, up to two designated deputies to the Vice‐Chancellor, and the President of the Student Union. The Lord Bishop of Winchester is also a Diocesan Governor. With the exception of ex-officio governors, governors hold office for a term of three years and are eligible for re‐appointment for up to a maximum of three terms of three years each in total. The Student Union governor holds office until the end of the academic year for which the student governor is appointed or until their appointment by the student comes to an end, whichever is sooner.

Annual Report and Financial Statements 2022-23

The role of the Chair of the Board of Governors is separated from the University’s Vice-Chancellor. The Chair is elected from amongst the non-executive members of the Board. No member of the Board of Governors receives remuneration for work they do for the Board of Governors. The Board of Governors has determined, under the Office for Students terms and conditions that the Vice-Chancellor shall be the Accountable Officer of the University, with the responsibilities set out by the Office for Students, up to and including being summoned to appear before the Public Accounts Committee of the House of Commons. The Board of Governors is satisfied that all conditions of receiving and using funds provided by the Office for Students, UK Research and Innovation (including Research England), Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions for the year to 31 July 2023. The University’s constitution places responsibility for its operations with the Vice-Chancellor, who is supported by the Executive Leadership Team. The University endeavours to conduct its business in accordance with the seven principles identified by the Committee on Standards in Public Life (selflessness, integrity, objectivity, accountability, openness, honesty and leadership) and with guidance to institutions of higher education which has been provided by the Committee of University Chairs (CUC) in its Guide for Members of Higher Education Governing Bodies in the UK.

In executing its duties, the Board of Governors maintains a comprehensive system of risk management, control and corporate governance, including the prevention and detection of corruption, fraud, bribery and irregularities. The Board of Governors receives adequate and regular information to monitor performance and track the use of public funds to enable it to identify any material change in its circumstances, including any significant developments that could impact the mutual interests of the University and the Office for Students. For the purposes of this statement, public funds include funds received from the Student Loans Company, UK Research and Innovation (including Research England), Education and Skills Funding Agency and the Department for Education. The University obtains assurance over the adequacy and effectiveness of the arrangements for corporate governance, risk management and oversight of statutory and other irregularities through its external and internal audit assurance process. Each year, aspects of its corporate governance arrangements are tested by the internal audit function, and the experience of the Board is annually reviewed by its Nominations Committee. The University’s risk management and regulatory reporting are approved by the Board of Governors through a formal committee structure. A ‘Statement of Primary Responsibilities’ provides more detail of the responsibilities of the Board, which include:

a. the determination of the University’s educational character and objectives and for the oversight of its activities b. the effective and efficient use of resources c. the University’s solvency and the safeguarding of its assets d. approving annual estimates of income and expenditure e. the assignment of duties and the appraisal of the Vice-Chancellor f. determining the identity of the designated staff and their selection, appraisal, remuneration and monitoring of their performance. g. the setting of a framework for the pay and general conditions of employment of the staff who are not designated staff h. after consultation with the staff, making the rules relating to the conduct of the staff i. the appointment of an Auditor. In accordance with its Memorandum and Articles of Association, the University has appointed a Clerk to the Governors who provides independent advice on matters of governance to Board members. Governors are required to complete a ‘Fit and Proper person’ record prior to their appointment. Upon appointment, governors complete a ‘Declaration of Office’ and are also required to complete a ‘Register of Interests’ annually and update in the year where necessary. The Register of Interests will be open for inspection by arrangement with the Clerk for the Governors.

Annual Report and Financial Statements 2022-23

Statement of Internal Controls The Board of Governors is responsible for maintaining a sound system of internal control, which supports the achievement of policies, aims and objectives, whilst safeguarding the public and other funds and assets for which it is responsible. This is in accordance with the responsibilities assigned to the Board in the Office for Students terms and conditions of funding for higher education institutions. The Statement of Internal Controls (SIC) relates to the period covered by the financial statements (1 August 2022 to 31 July 2023, and the period up to the date of approval of the audited financial statements). The University complies with the Office for Students conditions of registration. This includes giving due regard to relevant guidance about complying with relevant consumer protection law when developing and implementing policies, procedures and terms and conditions, and adopting a Student Protection Plan.

In the period covered by this SIC the Board of Governors can confirm that the University has complied with both: • the Terms and Conditions of Funding issued by the Office for Students; and • the Committee of University Chairs (CUC) Code of Governance (published in September 2020). The system of internal controls is designed to manage the risk of the University failing to achieve its policies, aims and objectives. It is not possible to eliminate this risk and accordingly, the system of internal controls can

only provide reasonable, not absolute, assurance about its effectiveness. The system is based on an ongoing process designed to identify risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them to achieve economy, efficiency, and effectiveness in the use of the University’s resources.

Annual Report and Financial Statements 2022-23

The Board of Governors has responsibility for reviewing the effectiveness of the system of internal controls and has

confirms compliance with relevant

established the following procedures:

university. The University's internal audit

The Board of Governors meets at regular intervals throughout the year

professional standards relating to the provision of internal audit services to a provider submits regular reports on the adequacy and effectiveness of the University's system of risk management.

to consider the University's plans and strategic direction.

governance.

The Board of Governors has delegated

The Board of Governor's review of the

some of the responsibility for providing oversight of risk management to the Risk and Audit Committee.

internal controls and corporate

effectiveness of the system of internal controls is informed by the University's

The Risk and Audit Committee obtains

management who are responsible for the operation of the internal control

regular reports from management on the steps they are taking to manage

auditor, and by comments made by the

risks in their areas of responsibility including progress reports on key projects. The Risk and Audit Committee

University

also receives reports from management on internal control activities. The Risk and Audit Committee receives regular reports from the University's internal audit service provider on the areas that have been subject to internal audit review and containing recommendations for improvement. The internal audit reports prepared for the Risk and Audit Committee e

a o inc Dae fi lnternal AiIB1 or Annual Report containing the internal auditor's opinion on the adequacy and effectiveness of the University's system of internal controls. The Chair of the Risk and Audit Committee will periodically report to the Board of Governors on internal controls. A regular programme of review is undertaken to identify and keep up to date the record of risks facing the University. Risk management is embedded in all University operations through a system of key performance and risk indicators. A University wide risk register is maintained, with risks ranked according to how they may prevent the University achieving its strategic priorities. Risk awareness is enabled at operational levels within the University and as appropriate to specific risks. The Board of Governor's review of the effectiveness of the system of internal controls is informed by the University's internal audit service, This service

SIGNED ON BEHALF OF THE BOARD OF GOVERNORS:

framework, the work of the internal external auditor in their reports to the

Chair of Board of Governors

Going Concern After making appropriate enquiries, the Board of Governors has a reasonable expectation that the University has adequate resources to continue in operational existence for at least 12 months from the date of these financial statements, as described within our

Statemen of Prnci alAccountin

olicies

on pages 45 to 48. For this reason, they

Professor Sarah Greer Vice-Chancellor

continue to adopt the going concern basis in preparing the financial statements. Date: 29 November 2023

Governors' liability on dissolution In accordance with the Memorandum and Articles of Association every Governor undertakes to pay up to one pound sterling (£1.00) towards the costs of dissolution and the liabilities incurred by the University while he or she was a governor. if the University is dissolved while he or she is a governor, or within one year afterwards.

REGISTERED OFFICE: University of Winchester Sparkford Road Winchester Hampshire SO22 4NR

Annual Report and Financial Statements 2022-23

Independent Auditor’s Report to Board of Governors of University of Winchester Report on the audit of the financial statements OPINION

GOING CONCERN

We have audited the financial statements of University of Winchester (“the University”) for the year ended 31 July 2023 which comprise the Statement of Comprehensive Income and Expenditure, the Statement of Changes in Reserves, the Statement of Financial Position, the Cash Flow Statement and related notes, including the Statement of Principal Accounting Policies.

The Board of Governors has prepared the financial statements on the going concern basis as it does not intend to liquidate the University or to cease their operations, and as it has concluded that the University’s financial position means that this is realistic. It has also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our opinion the financial statements: • give a true and fair view of the state of the University’s affairs as at 31 July 2023, and of the University’s income and expenditure, gains and losses and changes in reserves, and of the University’s cash flows, for the year then ended; • have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and • have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the University in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

In our evaluation of the Board of Governors’ conclusions, we considered the inherent risks to the University’s business model and analysed how those risks might affect the University’s financial resources or ability to continue operations over the going concern period. Our conclusions based on this work: • we consider that the Board of Governors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate; • we have not identified, and concur with the Board of Governors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the University’s ability to continue as a going concern for the going concern period. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a

guarantee that the University will continue in operation.

FRAUD AND BREACHES OF LAWS AND REGULATIONS – ABILITY TO DETECT To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: • Enquiring of the Board of Governors, the Risk and Audit Committee, internal audit and inspection of policy documentation as to the University’s high-level policies and procedures to prevent and detect fraud, including the internal audit function, and the University’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected or alleged fraud. • Reading Board of Governors and Risk and Audit Committee minutes. • Using analytical procedures to identify any unusual or unexpected relationships. We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. As required by auditing standards, and taking into account possible pressures to meet loan covenants, we perform procedures to address the risk of management override of controls in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we did not identify a fraud risk related to revenue

Annual Report and Financial Statements 2022-23

recognition due to the non-complex revenue recognition criteria, which limits the opportunity to fraudulently manipulate revenue. We did not identify any additional fraud risks. In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the fraud risk management controls. We also performed procedures including: • Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. This included postings made to unusual accounts involving revenue, cash and borrowings and journals containing specific words within the descriptions.

IDENTIFYING AND RESPONDING TO RISKS OF MATERIAL MISSTATEMENT DUE TO NON-COMPLIANCE WITH LAWS AND REGULATIONS We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the Board of Governors and other management (as required by auditing standards), and from inspection of the University’s regulatory and legal correspondence and discussed with the Board of Governors and other management the policies and procedures regarding compliance with laws and regulations. As the University is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with regulatory requirements. We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the University is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, taxation legislation, charities legislation, pensions legislation and specific disclosures required by higher education and related legislation, including the Accounts Direction issued by the Office for Students, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

In addition, as with any audit, there remained a higher risk of nondetection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Secondly, the University is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the need to include significant provisions. We identified the following areas as those most likely to have such an effect: compliance with the regulatory framework of the Office for Students, recognising the regulated nature of the University’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

The Board of Governors is responsible for the other information, which comprises the information included in the Annual Report and Financial Statements other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

We have reported separately on the University’s use of funds in the section of our audit report dealing with other legal and regulatory requirements. Context of the ability of the audit to detect fraud or breaches of law or regulation Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

OTHER INFORMATION

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work: • we have not identified material misstatements in the other information; • in our opinion the information given in the Strategic Report and the Directors’ Report is consistent with the financial statements; and • in our opinion those reports have been prepared in accordance with the Companies Act 2006.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION Under the Companies Act 2006, we are required to report to you if, in our opinion: • adequate accounting records have not been kept by the University, or returns adequate for our audit have not been received from branches not visited by us; or

Annual Report and Financial Statements 2022-23

• the University’s financial statements are not in agreement with the accounting records and returns; or

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

• certain disclosures of directors’ remuneration specified by law are not made; or

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

• we have not received all the information and explanations we require for our audit.

We are required to report on the following matters by the Accounts Direction dated 25 October 2019 issued by the Office for Students (‘the Accounts Direction’).

We have nothing to report in these respects.

In our opinion, in all material respects:

BOARD OF GOVERNORS RESPONSIBILITIES As explained more fully in its statement set out on page 29, the Board of Governors (the members of which are the Directors of the University company for the purposes of company law) is responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless it either intends to liquidate the University or to cease operations, or has no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

• funds from whatever source administered by the University for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation; • income has been applied in accordance with the University’s Articles of Government;

THE PURPOSE OF OUR AUDIT WORK AND TO WHOM WE OWE OUR RESPONSIBILITIES This report is made solely to the Board of Governors, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and paragraph 13(2) of the University’s Articles of Government and section 124B of the Education Reform Act 1988. Our audit work has been undertaken so that we might state to the Board of Governors those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the University and the Board of Governors for our audit work, for this report, or for the opinions we have formed.

• funds provided by the Office for Students, UK Research and Innovation (including Research England), the Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions; and • the financial statements meet the requirements of the Accounts Direction dated 25 October 2019 issued by the Office for Students. Matters on which we are required to report by exception We are required by the Accounts Direction to report to you where the University has an access and participation plan that has been approved by the Office for Students’ director of fair access and participation and the results of our audit work indicate that the University’s expenditure on access and participation activities for the financial year disclosed in Note 7b has been materially misstated. We are also required by the Accounts Direction to report to you where the results of our audit work indicate that the University’s grant and fee income, as disclosed in note 3a to the financial statements, has been materially misstated. We have nothing to report in these respects.

Rees Batley (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 66, Queen Square Bristol, BS1 4BE 4 December 2023

Annual Report and Financial Statements 2022-23

Financial Statements UNIVERSITY OF WINCHESTER Statement of Comprehensive Income Year Ended 31 July 2023

2023

2022

£'000

Notes Income Tuition fees and education contracts Funding body grants Research grants and contracts Other income Investment income Total income before endowments

1 2 3 4 5

64,902 4,761 384 14,631 944 85,622

68,306 3,798 379 13,660 181 86,324

Endowments

85,623

86,325

50,502 29,359 6,677 2,517 89,055

50,064 27,400 6,223 2,513 86,200

(3,432)

125

11,597

30,381

Total comprehensive surplus for the year

8,165

30,506

Represented by: Endowment comprehensive income for the year Unrestricted comprehensive surplus for the year

1 8,164

1 30,505

8,165

30,506

Total income Expenditure Staff costs Other operating expenses Depreciation Interest and other finance costs Total expenditure

6 7 9 8

(Deficit)/Surplus for the year Actuarial gain in respect of pension schemes

All items of income and expenditure relate to continuing activities. The accompanying notes form part of these financial statements.

Annual Report and Financial Statements 2022-23

UNIVERSITY OF WINCHESTER Statement of Changes in Reserves Year Ended 31 July 2023

Income and Expenditure Reserve

Endowment

Revaluation reserve

Total

£'000

81,532

79,396

160,970

Surplus/(Deficit) for the year

(3,433)

(3,432)

Other comprehensive income

11,597

Transfer between revaluation and income and expenditure reserve

1,692

(1,692)

Total comprehensive income for the year

9,856

(1,692)

8,165

91,388

77,704

169,135

Balance at 31 July 2022

Balance at 31 July 2023

The accompanying notes form part of these financial statements.

Annual Report and Financial Statements 2022-23

UNIVERSITY OF WINCHESTER A company limited by guarantee and registered in England and Wales. Registration number: 05969256 Statement of Financial Position at 31 July 2023

Notes

2023 £'000

2022 £'000

203,662 613 204,275

206,240 690 206,930

Non-current assets Tangible fixed assets Investment property and other investments

9 10

Current assets Stock Trade and other receivables Investments Cash and cash equivalents

11 12 13

42 6,692 15,208 20,934 42,876

53 5,985 20,032 21,808 47,878

Less: Creditors: amounts falling due within one year

(12,619)

(13,595)

Net current assets

30,257

34,283

Total assets less current liabilities

234,532

241,213

Creditors: amounts falling due after more than one year

(63,160)

(67,364)

Provisions

(2,237)

(12,879)

169,135

160,970

Unrestricted reserves Income and Expenditure Reserve Revaluation reserve Total unrestricted reserves

91,388 77,704 169,092

81,532 79,396 160,928

Total reserves

169,135

160,970

Total net assets Restricted reserves Income and expenditure - endowment reserve

The financial statements on pages 41 to 63 were approved by the Board of Governors on 29 November 2023 and signed on its behalf by:

M Edwards Chair of Board of Governors The notes on pages 49 to 63 form part of these financial statements.

Professor S Greer Vice-Chancellor

Annual Report and Financial Statements 2022-23

UNIVERSITY OF WINCHESTER Cash Flow Statement For the year ended 31 July 2023 Notes Cash flow from operating activities (Deficit)/Surplus for the year Adjustment for non-cash items Depreciation Impairments Fair value gain on Investment Property Decrease/(Increase) in stock (Increase) in trade and other receivables (Decrease)/Increase in creditors Decrease in provisions Cashflow from operating activities Adjustment for investing or financing activities Investment income Interest payable Endowment income Gain on sale of fixed assets Capital grant income Net cash inflow from operating activities

9 10 10

8 5

Cash flows from investing activities Proceeds from sale of fixed assets Capital grant receipts Investment withdrawals/(deposits) Investment income Payments made to acquire fixed assets Cash flows from financing activities Interest paid Interest element of finance lease payments New loans Repayments of amounts borrowed Endowment income Capital element of finance lease payments (Decrease) in cash and cash equivalents in the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year

The accompanying notes form part of these financial statements.

13 13

31 July 2023 31 July 2022 £'000 £'000 (3,432)

125

6,677 100 (23) 9 (629) (587) 519 2,634

6,223 (30) (29) (772) 1,172 4,261 10,950

(868) 2,517 (1) (10) (599) 3,673

(98) 2,513 (1) (31) (433) 12,900

10 142 4,824 790 (4,343) 1,423

31 3,619 (15,016) 48 (6,358) (17,676)

(1,101) (980) (3,568) 2 (323) (5,970)

(881) (1,002) (1,263) 1 (312) (3,457)

(874)

(8,233)

21,808 20,934

30,041 21,808

Annual Report and Financial Statements 2022-23

Statement of Principal Accounting Policies BASIS OF PREPARATION The University’s financial statements have been prepared in accordance with United Kingdom Accounting Standards including Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice: Accounting for Further and Higher Education (HE SORP 2019). They have also been prepared in accordance with the ‘carried forward’ powers and duties of previous legislation (Further and Higher Education Act 1992 and the Higher Education Act 2004) and the powers contained within the Higher Education and Research Act 2017, the Accounts Direction issued by the Office for Students, the terms and conditions of funding for higher education institutions issued by the Office for Students and the terms and conditions of Research England Grant. The financial statements are prepared in sterling which is the functional currency of the group and rounded to the nearest £’000. The University is a public benefit entity and has applied the relevant public benefit requirement of the applicable UK laws and accounting standards. The University is registered with the Office for Students. The University’s activities, together with the factors likely to affect its future development, performance and position, are set out in the Public Benefit statement which forms part of the Board of Governors Annual Report. The Board of Governors Financial Review also describes the University’s financial position, its cash flows, liquidity position and borrowing facilities.

GOING CONCERN The financial statements have been prepared on a going concern basis which the Board of Governors consider to be appropriate for the following reasons. The Board of Governors has prepared income and expenditure, statement of financial position, and cash flow forecasts

for the five years ending 31 July 2028. After reviewing these forecasts, the Board of Governors is of the opinion that, taking account of likely impact of high inflation costs, student recruitment challenges, changes in interest rates and a challenging recruitment market, the University will have sufficient funds to meet their liabilities as they fall due over the period of 12 months from the date of approval of the financial statements (the going concern assessment period). The Board of Governors approved the revisions to the current year forecast and the basis for the outer year forecasts to 2027/28 which form the basis for the Office for Students December 2023 submission, at the November 2023 meeting. A number of scenarios were modelled and considered by the Finance and Resources Committee before making the recommendation to the Board of Governors. The Board of Governors considered: • The University’s Strategic Plan 20232028 • The academic strategy • Financial modelling of various scenarios The University has no undrawn lending facilities, and the budgeted cash flow does not require any additional facilities within the next 12 months. The approved forecasts do not breach any covenant thresholds on our existing borrowing facilities. Having reviewed the scenario modelling, the Board of Governors is confident that the University will have sufficient funds to continue to meet their liabilities as they fall due for at least 12 months from the date of approval of the financial statements. The Board of Governors have therefore prepared the financial statements on a going concern basis.

BASIS OF CONSOLIDATION At 31 July 2023 the University held a controlling interest in Winchester

Business School Limited, Winchester Management School Limited and Inspirational Classrooms Limited. All of these companies have been dormant since incorporation. The University’s financial statements do not include the income and expenditure of the University of Winchester Student Union as the University does not exert significant control or influence over the policy decisions of the Students’ Union which is a separate legal entity.

INCOME RECOGNITION Income from the sale of goods or services is credited to the Statement of Comprehensive Income (SCI) when the goods or services are supplied to the customer or where the terms of a contract have been satisfied. Tuition fee income is reported gross of any expenditure which is not a discount and is credited to the SCI over the period in which the student is studying. Where the amount of the tuition fees is reduced by a discount for prompt payment, income receivable is shown net of discount. Bursaries and scholarships are accounted for gross as expenditure and not deducted from income. Income from education contracts is recognised when the University is entitled to the income which is the period in which the students are studying or where relevant, when the performance conditions within the contract have been met. Investment income is credited to the SCI on a receivable basis. Funds that the University receives and then disburses as a paying agent on behalf of a funding body are excluded from the SCI where the University is exposed to minimal economic benefit related to the transaction.

Annual Report and Financial Statements 2022-23

TAXATION STATUS The University is an exempt charity within the meaning of Part 3 of the Charities Act 2011. It also is considered to conform with the requirements of Schedule 6 of the Finance Act 2010 and meet the definition of a charitable company for Corporation Tax purposes. Accordingly, the University is potentially exempt from taxation in respect of income or capital gains received within categories covered by section 478-488 of the Corporation Tax Act 2010 (CTA 2010) or section 256 of the Taxation of Chargeable Gains Act, to the extent that such income or gains are applied to exclusively charitable purposes. The University receives no similar exemption in respect of Value Added Tax (VAT). Irrecoverable VAT on inputs is included in the cost of such inputs. Any irrecoverable VAT allocated to tangible fixed assets is included in their cost.

GRANT FUNDING Government revenue grants including research grants are recognised in income over the period in which the University recognises the related cost for which the grant is intended. Where part of a government grant is deferred, it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate. Grants (including research grants) from non-government sources are recognised in income when the University is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised initially as deferred income within creditors in the Statement of Financial Position and released to income as the conditions are met.

DONATIONS AND ENDOWMENTS Non-exchange transactions without performance related conditions are donations and endowments. Donations and endowments that do have donor

restrictions imposed are recognised in income when the University is entitled to the funds. Income is retained within the restricted reserve until such time it is utilised in line with any restrictions, at which point the income is released to general reserve by way of a reserve fund transfer. Donations with no restrictions are recognised in income when the University is entitled to the funds. Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms or restrictions applied to the individual endowment fund.

CAPITAL GRANTS Government capital grants are recognised in income over the expected useful life of the asset. Other capital grants are recognised in income when the University is entitled to the funds subject to any performance related conditions being met.

ACCOUNTING FOR RETIREMENT BENEFITS The principal pension schemes for the University’s staff are the Local Government Pension Scheme (LGPS) and the Teachers’ Pension Scheme (TPS). Both are defined benefit schemes. Under defined benefit schemes the University’s obligation is to provide the agreed benefits to current and former employees and the actuarial risk (that benefits will cost more than expected) and investment risk (that returns on assets set aside to fund the benefits will differ from expectations) are borne by the University. The TPS is a multi-employer scheme where it is not possible to identify the assets of the scheme that are attributable to the University. Accordingly, the TPS scheme is accounted for on a defined contribution basis and contributions to the scheme are recognised as expenditure in the period in which they are payable. The University is able to identify its share of the assets and liabilities of the LGPS and accordingly the University recognises its

share of the scheme’s assets and liabilities in its Statement of Financial Position.

EMPLOYMENT BENEFITS Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the University. Any unused benefits are accrued and measured as the additional amount the University expects to pay as a result of the unused entitlement.

ENHANCED PENSIONS The actual cost of any enhanced ongoing pension to a former employee of staff is paid by the University annually. An estimate of the expected future cost of any enhancement to the on-going pension of a former of staff is charged in full to the University’s Statement of Comprehensive income in the year that the member of staff retires. In subsequent years a charge is made to provisions in the Statement of Financial Position using a basis provided by the funding bodies.

FINANCE LEASES Leases in which the University assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance lease and the corresponding lease liabilities are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at the inception of the lease. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term to produce a constant periodic rate of interest on the remaining balance of the liability.

OPERATING LEASES Costs in respect of operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

Annual Report and Financial Statements 2022-23

TANGIBLE FIXED ASSETS Land and buildings Land and buildings are capitalised at cost on initial recognition. After initial recognition land and buildings are subsequently measured at cost/deemed cost less accumulated depreciation and accumulated impairment losses. Certain items of land and buildings that were owned by the University at the FRS 102 transition date of 1 August 2014 were valued at 1 August 2014 with the valuations being undertaken by Alder King. The basis of the valuation for specialised buildings was depreciated replacement cost and for non-specialised assets, market value was used where this was reasonable to obtain. In valuing the land and buildings at 1 August 2014 the University followed the FRS 102 transitional arrangements and does not intend to carry out regular revaluations of these assets in future. For the revalued assets held by the University at 1 August 2014, depreciation and impairment losses have been calculated using the revalued amount at 1 August 2014. Costs incurred in relation to land and buildings after initial purchase or construction are capitalised to the extent that they increase the expected future benefits to the University. Freehold land is not depreciated as it is considered to have an indefinite useful life. Buildings, plant and machinery are depreciated on a straight-line basis over the expected useful economic life (UEL) of the asset as follows: • Buildings, between 10 and 60 years • Plant and machinery between 5 and 25 years Where an item of land and buildings comprises two or more major components having a significantly different UEL, each component is accounted for separately and depreciated over its individual UEL. Only items of capital expenditure with a value of £5,000 or more are recognised as tangible fixed assets.

No depreciation is charged on assets in the course of construction. Depreciation methods, useful economic lives and residual values are reviewed at least annually and at the date of preparation of each Statement of Financial Position. Vehicles and Equipment Equipment, including computers and software costing less than £5,000 per individual item are recognised as expenditure. All other equipment is capitalised. Capitalised equipment is stated at cost and depreciated over its expected useful life as follows: • IT equipment – 3 years • Motor vehicles – 5 years • Fixtures and fittings – 10 years Depreciation methods, useful economic lives and residual values are reviewed at least annually and during the preparation of the University’s financial statements. Impairment A review for impairment of all assets is undertaken once per year and more frequently if events change or circumstances indicate that the carrying amount of any asset may not be recoverable.

BORROWING COSTS Borrowing costs are recognised as expenditure in the period in which they are incurred.

INTANGIBLE ASSETS Intangible assets are recognised in the Statement of Financial Position (SOFP) at cost and amortised over a period of between 3 and 10 years representing the estimated useful economic life of the asset.

INVESTMENT PROPERTIES Investment property consists of land and buildings held by the University primarily for the purpose of generating rental income or for capital appreciation (or both) rather than for use in delivering services. Investment properties are valued at 31 July each year at market value and changes in the valuation recognised in the SCI.

INVESTMENTS Non-current asset investments are held in the SOFP at fair value unless it is not possible to determine an accurate value in which case, they are held at amortised cost less any impairment. Current asset investments are included in the SOFP at fair value.

STOCKS Stocks are valued at the lower of cost and net realisable value.

CASH AND CASH EQUIVALENTS Cash includes cash in hand and deposits with financial institutions repayable on demand. Deposits are deemed to be repayable on demand if they are available within 24 hours without penalty. Cash equivalents are short term deposits with a maturity term of less than 3 months from the date of placement and with insignificant risk of change in value.

PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions are recognised in the financial statements when all of the following apply: a. The University has a present obligation (either legal or constructive) as a result of a past event b. It is probable that there will need to be an outflow of economic benefits to settle the obligation c. A reliable estimate can be made to value the obligation A contingent liability arises from a past event that gives the University a probable obligation whose existence can only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University. Contingent liabilities also arise in circumstances where a provision would otherwise be made but it is either not probable that an outflow of economic benefits will be required, or the amount of the obligation cannot be measured reliably. Where material, the amount recognised as a provision is discounted using a discount rate that reflects the risks specific to the liability.

Annual Report and Financial Statements 2022-23

A contingent asset arises where an event has taken place that gives the University a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the University. Contingent assets and liabilities are not recognised in the Statement of Financial Position but are disclosed in the notes to financial statements.

FINANCIAL INSTRUMENTS The University has elected to adopt Sections 11 and 12 of FRS 102 in respect of the recognition and measurement, and disclosure of financial instruments. Financial assets and liabilities are recognised when the University becomes party to the contractual provision of the instrument, and they are classified according to the substance of the contractual arrangements entered into. A financial asset and a financial liability are offset only when there is a legally enforceable right to set off the recognised amounts and an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial assets Basic financial assets include trade and other receivables, cash and cash equivalents, and investments in commercial paper (i.e. deposits and bonds). These assets are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets are assessed for indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the SCI. Financial assets are de‑recognised when the contractual rights to the cash flows from the asset expire or are settled or substantially all of the risks and rewards of the ownership of the asset are transferred to another party. Financial Liabilities Basic financial liabilities include trade and other payables and bank loans.

These liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost using the effective interest rate method.

reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

• Assets have been reviewed to assess whether there are indicators of impairment at 31 July 2023 and it has been concluded that there are no matters to indicate an impairment on any assets where an impairment has not already been accounted for.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non‑current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method. Financial liabilities are de‑recognised when the liability is discharged, cancelled, or expires.

RESERVES Reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which through endowment to the University, are held as a permanently restricted fund which the University must hold in perpetuity. Other restricted reserves include balances where the donor has designated a specific purpose for the donation and therefore the University is restricted in the way it can use these funds.

KEY ESTIMATES AND JUDGEMENTS The preparation of the University’s financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported value of assets and liabilities, income and expenses. These judgements, estimates and associated assumptions are based upon historical experience and other factors, including expectations of future events that are believed to be

In preparing these financial statements the following key judgements have been made: Tangible Fixed assets

Local Government Pension Scheme • The present value of the Local Government Pension Scheme defined benefit liabilities depend upon several factors that are determined on an actuarial basis using a variety of different assumptions. Any changes in the assumptions used have been disclosed in note 21.

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Notes to the Financial Statements for the year ended 31 July 2023

Note 1

Tuition fees and education contracts Full-time home students Full-time international students Part-time students Self-financing courses

Note 2

Funding body grants Recurrent grant from OfS Recurrent research grant Specific grants Deferred capital grants released in year

Note 3

Research grants and contracts Grants

Note 3a

The sources of grant and fee income are as follows: Grant income from the OfS Grant income from other bodies Fee income for taught awards (exclusive of VAT) Fee income for research awards (exclusive of VAT) Fee income from non-qualifying courses (exclusive of VAT) Total grant and fee income

Note 4

Other income Residences, catering and conferences Other services rendered Other income

Note 5

Endowment and Investment Income Income from short term investments Fair value gain on Investment Property Income from Investment Property Investment income Income from endowments

Note 6

Staff costs Salaries Social security costs Other pension costs Apprenticeship levy Total

2023 £'000 56,399 5,153 1,947 1,403 64,902

2022 £'000 59,439 5,131 2,187 1,549 68,306

2023 £'000 2,086 1,598 478 599 4,761

2022 £'000 1,816 936 612 434 3,798

2023 £'000 384

2022 £'000 379

2023 £'000 3,011 2,134 63,233 644 1,025 70,047

2022 £'000 2,649 1,528 66,309 649 1,348 72,483

2023 £'000 11,773 196 2,662 14,631

2022 £'000 11,241 163 2,256 13,660

2023 £'000 868 23 53 944 1 945

2022 £'000 98 30 53 181 1 182

2023 £'000 38,877 3,931 7,519 175 50,502

2022 £'000 35,166 3,533 11,205 160 50,064

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 6

Staff costs (continued) The highest paid employee of the University is the Vice-Chancellor and in 2022/23, the role was performed by Professor Sarah Greer. In 2021/22, the University was served by two vice-chancellors; Professor Elizabeth Stuart (1 August 2021 to 3 January 2022) and Professor Sarah Greer (from 4 January 2022 to 31 July 2022). Accordingly, for 2021/22, the figures reported below are for the part of the year that the individual served as vice-chancellor. Emoluments of Vice-Chancellor Professor Greer Basic salary Pension contributions Total emoluments Emoluments of former Vice-Chancellor Professor Stuart Basic salary Payments in lieu of pension contributions Total emoluments

2023 £

2022 £

220,000 52,096 272,096

126,559 29,969 156,528 £ 81,548 16,583 98,131

The emoluments reported for the former Vice-Chancellor Professor Stuart relate only to the emoluments for the period that she was the Vice-Chancellor and which ended on 3 January 2022. The Vice-Chancellor's basic pay and total remuneration expressed as a multiple of the median of all other employees of the University are: 2023 2022 No. No. Multiples for Vice-Chancellor 5.7 5.8 Basic salary 5.7 5.9 Total remuneration The median salary and remuneration calculations for the year ended 31 July 2023 were calculated in accordance with the methodology prescribed by the OfS in Accounts Direction 2019.41, where the median pay is calculated on a full-time equivalent basis for the salaries paid by the University to all its employees. The methodology is based on all staff employed at any point during the financial year, including all part-time staff and agency workers, which have been converted to a full-time equivalent cost. The University has incorporated the OfS threshold as a reasonable basis for excluding lower paid part-time staff on variable hours, casual or temporary contracts from the pay multiple calculations. The threshold reflects employees that are not required to be included in real-time reporting to HMRC who should be excluded from the calculation, as requested by the OfS. In accordance with the OfS Accounts Direction 2019.41 paragraph 12(c), the University is required to provide an explanation of the process adopted for judging the performance and total remuneration package for the head of the institution, the Vice-Chancellor. The remuneration of the Vice-Chancellor is based on robust evidence, comprising a combination of: • Performance against personal objectives • The performance of the University against its KPIs and targets • Relevant benchmarking comparators In relation to benchmarking, particular attention is given to comparator data for the heads of providers of similar sized higher education sector institutions. Account is also taken of the outcome of higher education sector pay negotiations for staff on the national pay spine. The University's Remuneration Committee is responsible for determining pay and reward for designated senior staff, including the Vice-Chancellor. During 2022/23 the Committee met twice, in March 2023 and June 2023. The Remuneration Committee made the decision to offer a 3% salary uplift to the Vice-Chancellor during the June 2023 meeting. Following communication of this decision, and consistent with last year (2021/22), the Vice-Chancellor notified the Remuneration Committee that she would be declining the salary uplift, due to the financial circumstances faced by the University.

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 6

Staff costs (continued) Higher paid staff The number of employees (inclusive of the Vice-Chancellor) with a basic salary that exceeded £100,000 in the year, excluding pension contributions, was:

£100,000 to £105,000 to £110,000 to £115,000 to £120,000 to £125,000 to £130,000 to £135,000 to £140,000 to £145,000 to £150,000 to £155,000 to £160,000 to £165,000 to £170,000 to £175,000 to £180,000 to £185,000 to £190,000 to £195,000 to £200,000 to £205,000 to £210,000 to £215,000 to £220,000 to

2023 Number 1 1 1 1 1 5

2022 Number 1 1 1 1 4

Headcount 430 580 1,010

Headcount 411 562 973

FTE 358 508 866

FTE 337 489 826

£104,999 £109,999 £114,999 £119,999 £124,999 £129,999 £134,999 £139,999 £144,999 £149,999 £154,999 £159,999 £164,999 £169,999 £174,999 £179,999 £184,999 £189,999 £194,999 £199,999 £204,999 £209,999 £214,999 £219,999 £224,999

Average staff numbers by major category : By Headcount Academic Administration By full time equivalent staff (FTE) Academic Administration

Severance costs In 2022/23, the University recognised severance costs of £238,000 for seventeen employees (2021/22: £94,000 for eight employees). Amounts for compensation for loss of office and redundancy for all staff are approved by the University's senior management team in accordance with delegated authority. Key Management Personnel Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the University and include the Vice-Chancellor, the Pro Vice-Chancellors and the Chief Operating Officer. In 2022/23 key management personnel also included the three elected staff representative members of the Board of Governors (four elected staff members in 2021/22). 2023 2022 12 12 The number of key management personnel Staff costs includes compensation paid to key management personnel as follows: Key management personnel compensation

2023 £'000 1,639

2022 £'000 1,317

Key Management Personnel arrangements since 2022 In 2022/23, the University created an Executive Leadership Team (ELT) comprising the Vice-Chancellor and other senior staff members of the University including the Pro Vice-Chancellors and the directors of Finance, Estates and Human Resources. The ELT is responsible for planning, directing and controlling the University and therefore meets the definition of Key Management Personnel for the purposes of the University's external reporting. Accordingly the aggregate remuneration paid to members of ELT is disclosed below and in future years, the new definition will be used for future reporting purposes. To ensure that the disclosure policy is consistent with prior years, the required information has been disclosed above using the wider definition of Key Management Personnel in addition to disclosing the required information for the members of ELT only. 2023 The number of key management personnel under the revised ELT arrangements

Key management personnel compensation under the revised ELT arrangements

£'000 1,420

There was no compensation for loss of office payable to any key management personnel in the year (2022: nil).

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements

Note 7

Analysis of total expenditure by activity Residences, catering and conferences. School Placement fees Consultancy Fees Consumables Books and periodicals Fellowships, bursaries, scholarships and prizes Heat, light, water and power Repairs and general maintenance Grants to Winchester Students Union Rentals Other expenses

Surplus before taxation is stated after charging: Auditor's remuneration (excluding VAT): External auditor's remuneration in respect of audit services External auditor's remuneration in respect of non-audit services Internal Audit Note 7 (b)

Access and participation Access Investment Financial Support Disability Support Research and evaluation

2023 £'000 4,038 1,427 956 1,318 1,857 988 2,063 4,640 402 441 11,229 29,359

2022 £'000 3,995 1,520 1,323 1,181 2,209 1,196 1,669 2,970 394 427 10,516 27,400

2023 £'000

2022 £'000

79 9 43

64 9 21

2023 £'000 646 706 702 379 2,433

2022 £'000 743 797 565 355 2,460

Of these costs, £898k are already included in the staff costs disclosed in note 6 (2022: £653k). The University’s 2022/23 Access and Participation Plan forecast expenditure of approximately £1.9 million (exclusive of Disability Support). If adjusted for the cost of Disability Support, the total expenditure incurred by the University in 2022/23 in connection with access and participation activities was therefore broadly in-line with the total identified in the Access and Participation Plan approved by the OfS. The costs reported comprise direct financial support to students plus direct staff costs and direct expenses incurred in respect of the University’s access and participation activities and no allocation or apportionment of overheads has been made. The University's Access and Participation Plan for the period to 31 July 2025 is available using the link below: https://www.winchester.ac.uk/media/content-assets/documents/UoW-2020-21---2024-25-Access-and-Participation-Plan-(Variation-June2023)pdf.pdf Note 8

Interest and other finance costs

£'000

Interest on bank loans Interest on finance leases Net interest on defined benefit scheme

1,101 980 436 2,517

891 1,002 620 2,513

Taxation The University is an exempt charity and as such is not subject to corporation tax on its charitable activities. The University has reviewed its non-charitable trading activities and has determined that there is no corporation tax liability for the year ending 31 July 2023.

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 9

Tangible Fixed Assets Freehold Land and Buildings

Leasehold Land and Buildings

Motor Vehicles

£'000

211,452 1,448 5,546 218,446

29,348 20 29,368

572 145 (28) 689

7,880 507 8,387

4,228 1,979 (5,546) 661

253,480 4,099 (28) 257,551

31,803 5,253 37,056

9,158 569 9,727

440 91 (28) 503

5,839 764 6,603

47,240 6,677 (28) 53,889

At 31 July 2023

181,390

19,641

186

1,784

661

203,662

At 31 July 2022

179,649

20,190

132

2,041

4,228

206,240

Cost and valuation At 1 August 2022 Additions Transfers Disposals At 31 July 2023

Equipment Assets in the Furniture Course of and Fittings Construction

Total

Depreciation At 1 August 2022 Charge for the year Disposals At 31 July 2023 Net book value

The University's freehold land and buildings were revalued as at 31st July 2014 by Alder King LLP. The valuations were prepared in accordance with the RICS Valuation - Professional Standard December 2014 ('Red Book'), FRS102 and the HE SORP 2019. The University took the transitional provision under FRS102 section 35 to elect to use fair value as deemed cost. The valuation of each part of University of Winchester was on the following bases of value and assumptions: - Owner-occupied property - to Fair Value ('FV') assuming that the property would be sold as part of the continuing business - Specialised property - to FV using the depreciated replacement cost ('DRC') approach and assuming that the property would be sold as part of the continuing business Note 10

Investment Property and Other Investments Investment Property Opening balance Fair value gain on Investment Property Closing balance

£'000 590 23 613

£'000 560 30 590

The investment property fair value gain of £23,000 is for a single property and is based on a valuation by Alder King LLP, Pembroke House, 15 Pembroke Road, Bristol, BS8 3BA. The investment property was valued on 31 July 2023. The valuation report was prepared in accordance with the RICS Valuation – Global Standards 2022 - incorporating the International Valuation Standards (“Red Book”) and the UK national supplement effective from 14 January 2019, FRS 102 and the SORP (for Further and Higher Education).

Other Investments Opening balance less impairments Closing balance

2023 £'000 100 (100) -

2022 £'000 100 100

The other investments are primarily comprised of the University's investment in the Hampshire Community Bank that was fully impaired in the year. Total Investment Property and Other Investments Note 11

Trade and other receivables Amounts falling due within one year: Debtors Prepayments and accrued income

613

690

2023 £'000

2022 £'000

1,592 5,100 6,692

1,498 4,487 5,985

2023 £'000 200 15,000 8 15,208

2022 £'000 10,024 10,000 8 20,032

2023 £'000 20,934 20,934

2022 £'000 21,808 21,808

Trade and other receivables include a non-current prepayment of £1.6 million (2022: £1.6 million). Note 12

Current Investments Nationwide 95 Day Saver Nat West Fixed Rate Bond Lloyds 175 Day Account

Note 13

Cash and cash equivalents Cash and cash equivalents

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 14

Creditors : amounts falling due within one year

2023 £'000 959 338 381 2,527 1,082 6,737 595 12,619

Mortgages and unsecured loans Obligations under finance lease Trade payables Other Payables Social security and other taxation payable Accruals and deferred income Deferred income - Government capital grants

2022 £'000 1,285 324 990 3,130 1,028 6,411 427 13,595

Mortgages and unsecured loans During the financial year the University had the following borrowing arrangements in place: On 1 August 2022 the University had an outstanding balance of £2.65 million on a £5 million loan from Allied Irish Bank amortising over 25 years from August 2006. This loan was fully repaid in 2022/23. A loan from Triodos Bank raised specifically for the purpose of funding the University's West Downs development and amortising as follows: a) £10 million amortising from May 2018 to July 2043 at 3.09%, fixed until June 2028. b) £10 million amortising from January 2021 to July 2043 at 2.025%, fixed until January 2028. c) £10 million on a variable rate of interest, amortising to July 2043. Note 15

Creditors : amounts falling due after more than one year Mortgages and unsecured loans Obligations under finance lease Deferred Capital Grants

15 a)

2023 £'000 994 3,205 22,892 27,091

2022 £'000 1,326 4,231 24,776 30,333

2023 £'000 352 1,149 21,283 22,784

2022 £'000 338 1,102 21,681 23,121

Other £'000 561 561

Total £'000 12,879 (10,642) 2,237

Finance leases The finance lease obligations that the University is committed to are as follows:

Between one and two years Between two and five years In five years or more

Note 16

2022 £'000 30,333 23,121 13,910 67,364

Maturity of debt Mortgages and unsecured loans are repayable as follows: Due between one and two years Due between two and five years Due in five years or more Due after more than one year

15 b)

2023 £'000 27,091 22,784 13,285 63,160

Provisions

At 31 July 2022 Statement of Comprehensive Income At 31 July 2023

LGPS Scheme £'000 10,727 (10,727) -

USS Scheme £'000 1,824 (392) 1,432

Enhanced Pensions £'000 328 (84) 244

Universities Superannuation Scheme (USS) deficit The obligation to fund the deficit on the Universities Superannuation Scheme (USS) arises from the contractual obligation with the pension scheme for total payments relating to benefits arising from past performance. A deficit plan was agreed requiring payments of 6.2% of salaries from 1 August 2022 rising to 6.3% in April 2024 and continuing until 30 April 2038 Enhanced Pension Provision The enhanced pension provision relates to an arrangement that was agreed with staff that have previously left the University's employment and the University cannot reasonably withdraw from this agreement. The provision has been recalculated in accordance with guidance issued by the funding bodies. The principal assumptions for this calculation are: Price inflation

2023 7.03%

2022 7.03%

Other Provisions Other provisions relate to the estimated costs of undertaking safety related works on University buildings together with a constructive obligation relating to certain staff that are to be made redundant in 2023/24 but where the decision was made prior to 31 July 2023.

Annual Report and Financial Statements 2022-23 Notes to the Financial Statements Note 17

Note 18

Operating lease obligations

2023 £'000

2022 £'000

Payable during the year

3,194

3,433

Future minimum lease payments due: Payable within 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease payments due

2,749 8,845 23,715 35,309

3,180 8,210 24,263 35,653

Rentals receivable under operating leases

122

213

Future minimum lease payments due: Receivable within 1 year Later than 1 year and not later than 5 years Later than 5 years Total lease payments receivable

280 1,148 3,106 4,534

93 1,137 3,397 4,627

2023 £'000

2022 £'000

888

663

Capital commitments

Commitments contracted for Note 19

Contingent liabilities There are no contingent liabilities (2022:nil).

Note 20

Events after the reporting period There are no events that have occurred since 31 July 2023 that are required to be reported in these financial statements.

Note 21

Defined Benefit Obligations The University's employees belong to two principal post-employment benefit plans: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and the Hampshire County Council Pension Fund which is part of the Local Government Pension Scheme (LGPS) for non-teaching staff. Both are multi-employer defined-benefit plans.

Teachers’ Pension Scheme The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other educational establishments, including academies, in England and Wales that are maintained by local authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS. The Teachers’ Pension Budgeting and Valuation Account Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ’pay as you go‘ basis – contributions from members, along with those made by employers, are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account of the Teachers' Pension Budgeting and Valuation Account to be kept of receipts and expenditure (including the cost of pension increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return. Valuation of the Teachers’ Pension Scheme As a result of the latest scheme valuation employer contributions were increased in September 2019 from a rate of 16.4% to 23.6%. Employers also pay an additional charge equivalent to 0.08% of pensionable salary costs to cover administration expenses.

A copy of the latest valuation report can be found by following this link to the Teachers' Pension Scheme website: https://www.teacherspensions.co.uk/news/employers/2019/04/teachers-pensions-valuation-report.aspx Scheme Changes In December 2018, the Court of Appeal held that transitional protection provisions contained in the reformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June 2019, rejected the Government's application for permission to appeal the Court of Appeal's ruling and subsequently referred the case to an Employment Tribunal to determine a remedy which will need to be offered to those members of the two schemes who were subject of the age discrimination.

Since then, claims have also been lodged against the main public service schemes including the TPS. The Department has conceded those in line with the rest of the government. In July 2020 HM Treasury launched a 12-week public consultation which will provide evidence to support the delivery of an appropriate remedy for the affected schemes, including TPS. A final remedy will be determined once the results of the consultation are established.

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 21

Defined Benefit Obligations (continued) Scheme Changes (continued) In December 2019, a further legal challenge was made against the TPS relating to an identified equalities issue whereby male survivors of opposite-sex marriages and civil partnerships are treated less favourably than survivors in same-sex marriages and civil partnerships. The Secretary of State for Education agreed not to defend the case. In June 2020, the Employment Tribunal recorded its findings in respect of the claimant. DfE is currently working to establish what changes are necessary to address this discrimination. Any impact of these events will be taken into account when the next scheme valuation is implemented. This is scheduled to be implemented in April 2023, based on April 2020 data. The TPS pension costs to the University in the year amounted to £4.1 million (2022: £3.8 million). FRS 102 (28) Under the definitions set out in FRS 102 (28.11), the TPS is a multi-employer pension plan. The University is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the University has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined-contribution plan. The University has set out above the information available on the plan and the implications for the University in terms of the anticipated contribution rates.

Local Government Pension Scheme (LGPS) The LGPS is a funded defined-benefit plan, with the assets held in separate funds administered by Hampshire County Council. The total contributions made for the year ended 31 July 2023 amounted to £3.7 million of which employer’s contributions totalled £2.7 million and employees’ contributions totalled £1.0 million. The agreed contribution rates for future years are 22% for employers and range from 5.5% to 12.5% for employees, depending on salary. GMP judgement - 'Guaranteed Minimum Pension (GMP) is a portion of pension that was accrued by individuals who were contracted out of the State Second Pension between 6 April 1978 and 6 April 1997. The rate at which GMP was accrued, and the date it is payable, is different for men and women, meaning there is an inequality for male and female members who have GMP. This was a consequence of the State Pension itself being unequal at the time. On 26 October 2018, the High Court handed down a judgement involving the Lloyds Banking Group’s defined benefit pension schemes. The judgement concluded the schemes should be amended to equalise pension benefits for men and women in relation to guaranteed minimum pension benefits, “GMP”. In March 2016, the Government introduced an ‘interim’ solution for public sector schemes to pay full inflationary increases on GMP’s for those reaching State Pension Age (SPA) between 6 April 2016 and 5 December 2018 to ensure these members continued to receive full inflationary increases on the combined public sector scheme and State pensions. This was included in the 2016 valuation of the LGPS fund and was therefore recognised on the balance sheet for year ending 31 July 2017. In January 2018, the interim solution was extended to individuals reaching SPA on or before 5 April 2021. In addition, the Government has indicated that it is committed to continuing to compensate all members of public sector pension schemes reaching SPA after April 2021. The constructive obligation at 31 July 2023, based on a valuation of the University’s liabilities, for the Government’s commitment to pay pension increases on GMP’s for members reaching SPA after December 2018, which includes a liability for Government’s commitment to compensate all members in the future for changes to the State Pension has been included in the 2022/23 pension cost. McCloud Judgement - In December 2018 the Court of Appeal ruled in the 'McCloud / Sergeant' judgement that the transitional protection arrangements put in place when the Firefighters' and Judges' pensions scheme were reformed were age discriminatory. The Government applied to the Supreme Court for permission to appeal this judgement, however the Supreme Court rejected the Government's request on 27 June 2019. The next stage is for the case to be referred to the Employment Tribunal to agree the remedy, following appropriate consultation. In a Ministerial Statement dated 15 July 2019 the Government committed to extending a remedy across all public sector schemes which included similar transitional protection arrangements, which includes the LGPS. A constructive obligation at 31 July 2023 has been calculated, in relation to a potential remedy, based on a valuation of the University's liabilities, and has been included in the pension cost. The following information is based upon a full actuarial valuation of the fund at 31 March 2022. Principal actuarial assumptions

Discount Rate CPI inflation Rate of increase to pensions in payment Pension accounts revaluation rate Rate of general increase in salaries

31 July 2023 (% pa) 5.1 3.0 3.0 3.0 4.0

31 July 2022

31 July 2021

31 July 2020

(% pa) 3.4 2.5 2.5 2.5 3.5

(% pa) 1.7 2.6 2.6 2.6 3.6

(% pa) 1.4 2.2 2.2 2.2 3.2

Demographic assumptions The future longevity assumptions are in line with the latest Continuous Mortality Investigation (CMI) results, namely the CMI 2022 model with a 25% weighting of 2022 data and 0% weighting on 2021 (and 2020) data, smoothing, initial adjustment of 0.25% and a longterm rate of 1.5% per annum for both males and females. This assumption has changed from 2022 (a 25% weighting parameter has been applied to 2022 data) to approximately reflect the higher-than expected observed deaths in 2022.

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 21

Defined Benefit Obligations (continued)

Local Government Pension Scheme (LGPS) (continued) Current Pensioners Male Female

2023 years 22.1 24.7

2022 years 22.9 24.7

Active member aged 45 at 31 March 2022 Male Female

22.6 25.7

25.4 27.1

Asset Allocation

Equities Property Bonds Cash

By value at 31 By value at July 2023 31 July 2022 59% 67% 6% 8% 32% 24% 3% 1% 100% 100%

The amount included in the Statement of Financial Position in respect of the defined benefit pension plan is:

Fair value of plan assets Present value of plan liabilities Less notional surplus not recognised Net pensions asset/(liability) (note 16)

2023 £'000 61,641 (59,001) 2,640 (2,640)

2022 £'000 59,268 (69,995) (10,727) -

(10,727)

The fair value of the University's share of the assets and liabilities resulted in a net surplus at 31 July 2023 which the University did not recognise in its Statement of Financial Position. This approach was justified based on the market conditions as at 31 July 2023, the cost of benefits accruing in future is lower than the contributions payable to meet the associated cost at that date.

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 21

Defined Benefit Obligations (continued) Local Government Pension Scheme (continued) Amounts recognised in the Statement of Comprehensive Income in respect of the Plan are as follows: Amounts included in staff costs Current service cost Past service cost Interest on net defined benefit liability Total Amounts recognised in Other Comprehensive Income Asset (losses) arising during the period Liability gains arising during the period less notional surplus not recognised Amounts recognised in Other Comprehensive Income

2023 £'000 3,644 10 372 4,026

2022 £'000 5,624 613 6,237

2023 £'000 (2,172) 16,409 14,237 (2,640) 11,597

2022 £'000 (3,346) 33,727 30,381 30,381

2023 £'000 69,995 3,644 2,428 899 (16,409) (1,566) 10 59,001

2022 £'000 96,969 5,624 1,644 673 (33,727) (1,188) 69,995

2023 £'000 59,268 2,056 (2,172) 3,156 899 (1,566) 61,641

2022 £'000 59,665 1,031 (3,346) 2,433 673 (1,188) 59,268

2023 £'000 2,056 (2,172) (116)

2022 £'000 1,031 (3,346) (2,315)

2023 £'000 61,641 (59,001) 2,640 (2,640)

2022 £'000 59,268 (69,995) (10,727) -

(10,727)

The split of the liabilities at the last valuation between the various categories of members is as follows: Active members

57%

Deferred Pensioners

18%

Pensioners

25%

Changes in the present value of defined benefit obligations Defined benefit obligations at start of period Current service cost Interest expense on defined benefit obligation Contributions by participants Actuarial (gains) on liabilities Net benefits paid out Past service cost Defined benefit obligations at end of period Changes to the fair value of assets Opening fair value of assets Interest income on assets Re-measurement (losses) on assets Employer contributions Contributions by participants Net benefits paid out Fair value of plan assets at end of period Actual return on assets Interest income on assets (Loss) on assets Actual return on assets Reconciliation of funded status to Statement of Financial Position Fair value of assets Present value of funded defined benefit obligation Less notional surplus not recognised Asset/(Liability) recognised in the Statement of Financial Position

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 22

Financial instruments The University has chosen to adopt Sections 11 and 12 of FRS 102 in full in respect of financial instruments. Financial assets and liabilities Financial assets and financial liabilities are recognised when the University becomes a party to the contractual provisions of the instrument. Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations rather than the financial instrument's legal form. All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets measured at fair value through the profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless arrangement constitutes a financing transaction. A financial asset or financial liability that is payable or receivable in one year is measured at the undiscounted amount expected to be received or paid net of impairment, unless it is a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. The financial instruments may be analysed as follows:

Financial assets that are debt instruments measured at amortised cost Financial liabilities measured at amortised cost

2023 £'000

2022 £'000

37,734 (58,609)

45,460 (62,990)

Financial assets measured at amortised cost comprise cash and cash equivalents, investments and receivables. Financial liabilities measured at amortised cost comprise mortgages, unsecured loans, finance leases, trade payables, accruals and other payables.

Note 23

Related party transactions Due to the nature of the University’s operations and the composition of the Board of Governors being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the Board of Governors may have an interest. A Register of Governors’ interests is maintained by the University and updated at least annually. All transactions involving organisations in which a member of the Board may have an interest are conducted at arms length and in accordance with the University’s Financial Regulations and follow standard procurement procedures.

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 23

Related party transactions (continued) The following transactions have been identified for disclosure in relation to those organisations related to senior staff and members of the Board of Governors: (Income)/ expenditure £'000

Name of organisation

Nature of interest

Blue Apple Theatre

One of our governors is a trustee of the Blue Apple Theatre.

(6)

Embley Hampshire Collegiate School

One of our governors is a governor of Embley Hampshire Collegiate School.

(1)

Hampshire Hospitals NHS Foundation Trust

One of our governors performed the duty as Chaplain for the Trust in 2022/23.

Kempshott Junior School, Basingstoke

One of the University's senior managers is a member of the governing body of the School.

Paninaro Enterprise Group Ltd.

An interim senior manager who was a member of key management personnel is the owner of this Company and received their emoluments via payments to the Company.

Debtor/ (creditor) £'000

(197) 325

120

Perins Multi Academy Trust

One of our governors is the Chair of the multi-academy Trust.

Peter Symonds College

One of our governors is a Foundation Governor of the College.

Royal College of Nursing Foundation

One of our governors is employed by the Royal College of Nursing Foundation.

(1)

Sarum St Michael Educational Charity

One of our governors was a governor of the Charity.

(2) 3

Treloars College

One of our governors is a patron of the College.

(3)

Trinity Winchester

One of the University's senior managers is a trustee of the Charity

(2)

University of Southampton PASNAS

One of the University's senior managers is a trustee of the Pension Fund

(20) 6

University of Winchester Students Union

The student governor on the Board of Governors is also a member of the University of Winchester Students Union which receives an annual grant from the University. All other transactions between the two parties are conducted on a commercial basis.

(237) 435

Wessex Cancer Trust

The spouse of one of the University's senior managers is employed by the Charity.

(1)

Winchester Cathedral

Several of the governors have connections with Winchester Cathedral.

Winchester Deanery

Several of the governors have connections with Winchester Deanery.

(8)

(1) 22 (1) 1

(37)

(3)

The University has reviewed the sector guidance in relation to linked charities and has not identified any additional disclosure that is needed. During 2022/23, no governor received any remuneration from the University for the work they do as a member of the Board of Governors (2022:nil). Governors do receive compensation for travel costs. Members of the Board of Governors who are also members of staff of the University receive remuneration in their capacity as members of staff only. In the year to 31 July 2023, £372 was paid to members of the Board of Governors to reimburse costs incurred (2022: £981).

Annual Report and Financial Statements 2022-23

Notes to the Financial Statements Note 24

Financial Responsibility Supplemental Schedule for the U.S. Department of Education In satisfaction of its obligations to facilitate students' access to US Federal Financial Aid, the University is required, by the US Department of Education, to present the following Supplemental Schedule in a prescribed format. The amounts within the schedules have been: - prepared under the historical cost convention, subject to the revaluation of certain fixed assets - prepared using United Kingdom generally accepted accounting practice, in accordance with Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 Edition) - presented in pounds sterling The schedules set out how each amount disclosed has been extracted from the financial statements. As set out above, the accounting policies used in determining the amounts disclosed are not intended to and do not comply with the requirements of accounting principles generally accepted in the United States of America. Primary Reserve ratio

2022/23 £'000

2021/22 £'000

169,092

160,928

Page

Line item/related disclosure

Expendable Net Assets

Statement of Financial Position - Net assets without donor restrictions

Net assets without donor restrictions

Statement of Financial Position - Net assets with donor restrictions

Net assets with donor restrictions

Statement of Financial Position - Related party receivable and Related party note disclosure

Secured and unsecured related party receivable

Statement of Financial Position - Related party receivable and Related party note disclosure

Unsecured related party receivable

Statement of Financial Position Property, plant and equipment - net (includes Construction in Progress)

Property , plant and equipment, net (incl construction in progress)

203,662

206,240

Notes - Property, plant and equipment, net - pre-implementation

Property, plant and equipment, net - pre-implementation (less construction in progress)

145,976

151,071

Notes - Property, plant and equipment, net - post-implementation with outstanding debt for original purchase

Property, plant and equipment, net - post-implementation (less construction in progress), with outstanding debt for original purchase

Notes - Property, plant and equipment, net - post-implementation without outstanding debt for original purchase

Property, plant and equipment, net - post-implementation (less construction in progress), without outstanding debt for original purchase

41,740

40,751

Notes - Property, plant and equipment, construction in progress

Construction in progress

661

4,228

Statement of Financial Position - Lease right of use assets, net

Lease right of use asset, net

Notes - Lease right of use asset preimplementation

Lease right of use asset - pre-implementation

Notes - Lease right of use asset postimplementation

Lease right of use asset - post-implementation

Statement of Financial Position goodwill

Intangible assets

Statement of Financial Position - post employment and pension liabilities

Post-employment and pension liabilities

1,676

12,879

Statement of Financial Position - notes payable and line of credit (current and long-term) and Line of Credit for Construction in progress

Long-term debt - for long-term purposes

65,052

69,400

Statement of Financial Position - notes payable and line of credit (current and long-term) and Line of Credit for Construction in progress

Long-term debt - for long-term purposes preimplementation

61,419

65,310

Annual Report and Financial Statements 2022-23

Note 24

Financial Responsibility Supplemental Schedule for the U.S. Department of Education (continued) Primary Reserve ratio (continued)

2022/23 £'000

2021/22 £'000

Line item/related disclosure

Expendable Net Assets

Statement of Financial Position - notes payable and line of credit for long term purposes (both current and long term) and line of credit for CIP

Long-term debt - for long-term purposes postimplementation

Statement of Financial Position - notes payable and line of credit (both current and long term) and line of credit for Construction in progress

Line of credit for Construction in Progress

Statement of Financial Position - lease right of use of asset liability

Lease right of use asset liability

Statement of Financial Position - lease right of use of asset liability - preimplementation

Pre-implementation right of use leases

Statement of Financial Position - lease right of use of asset liability - post implementation

Post-implementation right of use leases

Statement of Financial Position Annuities

Annuities with donor restrictions

Statement of Financial Position - Term Endowments

Term Endowments with donor restrictions

Statement of Financial Position - Life Income Funds

Life Income funds with donor restrictions

Statement of Financial Position Perpetual Funds

Net assets with donor restrictions: restricted in perpetuity

Statement of Activities - Total operating expenses, prior to adjustments

Total expenses without donor restrictions - taken directly from Statement of Activities

89,055

86,200

Statement of Activities - Non-operating Non-Operating and Net investment (loss) (Investment return appropriated for spending), Investments net of annual spending gain / (loss), Other components of net periodic pension. Change in value of split interest agreements and Other gains / (losses). (Total from Statement of Activities prior to adjustments)

Statement of Activities - (Investment return appropriated for spending), Investments net of annual spending gain / (loss)

Net investment losses

(23)

(30)

Statement of Activities -pension related changes other than periodic pension

Pension related changes other than net periodic costs (gain) / loss

(11,597)

(30,381)

2022/23

2021/22

Page

Equity Ratio Page

Line item/related disclosure

Modified Net Assets

Statement of Financial Position - Net Assets without donor restrictions

Net assets without donor restrictions

Statement of Financial Position - Net Assets with donor restrictions Statement of Financial Position Goodwill Statement of Financial Position - Related party receivable and related party note

Net assets with donor restrictions

Statement of Financial Position - Related party receivable and related party note

£'000

169,092

160,928

Intangible assets

Secured and Unsecured related party receivables

Unsecured related party receivables

Annual Report and Financial Statements 2022-23

Note 24

Financial Responsibility Supplemental Schedule for the U.S. Department of Education (continued) Equity Ratio (continued)

Page

Line item/related disclosure

Modified Assets

Statement of Financial Position - Total Assets Notes - Statement of Financial Position lease of use asset - pre-implementation

Total assets

Lease right of use asset - pre-implementation

2022/23 £'000

2021/22 £'000

247,151

254,808

Statement of Financial Position - lease of Pre-implementation right of use leases use asset - liability pre-implementation

Statement of Financial Position goodwill

Intangible assets

Statement of Financial Position - Related party receivable and related party note

Secured and Unsecured related party receivable

Statement of Financial Position - Related party receivable and related party note

Unsecured related party receivables

2022/23

2021/22

Net Income Ratio Page

Line item/related disclosure

Net Income Ratio

£'000

Statement of Activities - change in net assets without donor restriction

Change in net assets without donor restriction

8,164

30,505

Statement of Activities (net assets released from restriction) total operating revenue and other additions and sale of fixed assets gains / (losses)

Total Revenues and Gains

85,622

86,324

Annual Report and Financial Statements 2022-23

Administrative Information REGISTERED OFFICE

EXTERNAL AUDITOR

University of Winchester Sparkford Road Winchester, Hampshire SO22 4NR

KPMG LLP 66 Queen Square Bristol, BS1 4BE

Telephone: 01962 841515 Facsimile: 01962 842280 Website: www.winchester.ac.uk The University of Winchester is a private charitable company limited by guarantee in England and Wales. The University is registered with the Office for Students. Company registration number: 05969256 (England and Wales)

INTERNAL AUDITOR TIAA Ltd Artillery House Fort Fareham, Newgate Lane Fareham PO14 1AH

University registration numbers; UKPRN: 10003614 OP EID: 02149700

LAWYER SENIOR OFFICERS AND ADVISORS Vice-Chancellor and Accountable Officer: Sarah Greer Deputy Vice-Chancellor & Provost: Elizabeth Stuart Chief Operating Officer: Gavin Hunter Pro Vice-Chancellors: Sam Jones, Angus Paddison and Matthew Webster

PRINCIPAL BANKER NatWest Bank PLC 105 High Street Winchester Hampshire SO23 9AW

Blake Morgan New Kings Court , Tollgate Chandlers Ford, Eastleigh SO53 3LG